BlackRock warns that stablecoins will challenge governments' ability to control fiat currency, especially as stablecoin adoption increases rapidly and could shrink the use of fiat currency in emerging markets.
This assessment is included in BlackRock's 2026 Global Outlook report, amidst warnings from banks about the risk of large-scale deposit withdrawals if stablecoins become widely used.
- BlackRock: Stablecoins no longer have a niche, potentially undermining the role of legal tender.
- Standard Chartered: Risk of losing over $1 trillion in deposits in emerging markets.
- The Genius Act (July) allowed yield-based products, putting pressure on banks.
BlackRock: Stablecoins could shrink fiat currency in emerging markets.
In its 2026 Global Outlook, BlackRock argues that stablecoins will challenge government control over fiat currency and reduce fiat currency usage in emerging market countries as stablecoins gain stronger acceptance.
BlackRock emphasizes that this shift is occurring alongside the adoption of stablecoins, putting fiat currency at risk of losing Vai in payments and value flow in emerging economies.
Samara Cohen, Global Market Development Director at BlackRock, said: "Stablecoins are no longer a niche product; they are becoming a bridge between traditional finance and digital liquidity."
Banks warn of deposit withdrawal risks and pressure from the new regulatory framework.
Standard Chartered (UK) warned in October that widespread adoption of stablecoins could wipe out more than $1 trillion in deposits from bank accounts in emerging markets.
The article also addresses a similar challenge in the US, where competitive pressure is spreading to the traditional banking sector. Notably, the Genius Act, signed into law in July, allows cryptocurrency companies to offer Capital yield products prohibited by traditional banks, increasing the risk of capital flight from the banking system.
