The FSB warned that USD Peg stablecoins circulating across borders could pose more serious financial and macroeconomic stability risks to emerging and developing economies.
In its 2025 annual report published on March 24, the FSB stated that USD Peg stablecoins could promote the replacement of domestic currencies, weaken domestic payment systems, and reduce the effectiveness of monetary policy, while also emphasizing the need to accelerate the implementation of the 2023 global stablecoin regulatory framework.
- FSB: Cross-border USD- Peg stablecoins increase risks for emerging markets.
- Risks: replacement of the domestic currency, weakening of domestic payments, reduced effectiveness of monetary policy.
- The FSB is pushing for the implementation of a stablecoin regulatory framework in 2023, acknowledging that there is still room for improvement.
The FSB identifies key risks to emerging economies.
The FSB assesses that the cross-border circulation of USD Peg stablecoins poses more acute financial and macroeconomic stability risks to emerging and developing economies.
According to the FSB, USD Peg stablecoins could lead to the substitution of the domestic currency, weakening the use of domestic payment systems and reducing the effectiveness of monetary policy. These impacts could spill over into the traditional financial sector through operational and liquidation linkages.
The FSB also warned that stablecoins could increase fiscal pressure and be used to circumvent Capital flow regulations. The focus of the risk lies not only in the scale of circulation, but also in the ability to quickly transfer value across borders and impact individual countries' Capital control mechanisms.
Recommendations for monitoring and implementing a global stablecoin regulatory framework in 2023.
The FSB called for a continuous assessment of the stablecoin sector's development and urged the implementation of the global regulatory framework issued in 2023, given remaining enforcement gaps.
The FSB's key areas requiring focused monitoring include liquidation vulnerabilities, operational risks, and the degree of integration with the traditional financial system. Continuous assessment aims to identify vulnerabilities early, thereby mitigating the risk of contagion as stablecoins expand Vai in cross-border payments and remittances.
