Several central bank governors have raised concerns over the growing influence of US dollar-backed stablecoins such as USDC and USDT, warning that they could accelerate “dollarization” in emerging economies.
According to a report by the Financial Times, policymakers argue that the widespread adoption of these digital assets may weaken central banks’ ability to conduct monetary policy, particularly in countries facing currency instability or high inflation.
Officials also highlighted rising concerns about the potential misuse of stablecoins in facilitating illicit activities, including cross-border transfers outside regulatory oversight, driven by the speed and low cost of blockchain transactions.
At the same time, some experts point out that stablecoins improve cross-border payment efficiency and financial inclusion, presenting regulators with the challenge of balancing innovation with economic and financial stability.