FSB Annual Report Warns Dollar Stablecoins Intensify Financial Risks in Emerging Markets

CycleProphet

2026-03-24 12:21:16

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Deep Tide TechFlow News, March 24, According to Cointelegraph, the Financial Stability Board (FSB) warned in its 2025 annual report that the circulation of dollar-pegged stablecoins across multiple jurisdictions could pose “more severe” financial stability risks to emerging markets and developing economies, including issues such as currency substitution, reduced use of local payment systems, diminished effectiveness of domestic monetary policy, fiscal resource pressures, and capital flow regulation evasion.

The FSB also noted that the application of stablecoins and crypto assets in the real economy, such as payments, remains very limited, and called on regulators to continue monitoring the associated risks with core financial markets. Additionally, the FSB will focus in 2026 on topics such as digital innovation in crypto assets, stablecoin vulnerability monitoring, and cross-border payments.

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