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The risks are astir acute successful areas wherever crypto's usage extends beyond concern into savings and remittances, according to the report.
Sep 26, 2025, 10:08 a.m.
Cryptocurrency adoption successful emerging markets poses risks to monetary sovereignty and fiscal resilience, recognition ratings elephantine Moody's Ratings said successful a study connected Thursday.
The risks are astir acute successful areas wherever crypto's usage extends beyond concern into savings and remittances, according to the report. Moody's suggests that higher penetration of stablecoins pegged to the U.S. dollar weaken monetary transmission erstwhile it leads to pricing and colony progressively occurring extracurricular a market's home currency.
Stablecoins are crypto tokens pegged to the worth of a accepted fiscal asset, specified arsenic a fiat currency, with the U.S. dollar comfortably the astir prevalent.
"This creates 'cryptoization' pressures analogous to unofficial dollarization, but withgreater opacity and little regulatory visibility," Moody's said.
Cryptocurrency tin besides supply caller ways of for superior flight, done pseudonymous wallets and offshore exchange, allowing individuals to determination wealthiness overseas discreetly, undermining speech complaint stability, according to the report.
Moody's besides highlighted however accrued ownership of cryptocurrency has been concentrated successful emerging markets, peculiarly successful Southeast Asia, Africa and parts of Latin America. Here, adoption is often driven by inflationary pressure, currency pressured and constricted entree to banking services. In contrast, adoption successful much precocious economies, adoption is driven by organization integration and regulatory clarity.
Crypto ownership expanded to an estimated 562 cardinal radical by 2024, an summation of 33% from 2023, the study said.
Read More: Stablecoin Adoption Set to Surge After GENIUS Act, Hit $4T successful Cross-Border Volume: EY Survey
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