The Financial Stability Board (FSB) warned Tuesday that US dollar-denominated stablecoins circulating across multiple jurisdictions pose "potentially more acute" financial stability and macroeconomic risks for emerging market and developing economies.
The FSB’s 2025 annual report cites four core threats: currency substitution, reduced use of domestic payment systems, diminished effectiveness of domestic monetary policy, and strain on fiscal resources - including potential circumvention of capital flow controls.
The report confirms crypto assets and stablecoins remain largely absent from real-world economic activity - especially payments - despite market growth. It stresses ongoing monitoring of liquidity, operational risk, and deepening interlinkages with traditional finance.
The FSB also flagged digital innovation, private credit vulnerabilities, nonbank financial intermediation, cross-border payments, and crisis preparedness as key 2026 priorities.