FSB warns stablecoins could threaten financial stability in emerging markets

The Financial Stability Board (FSB), an international body that makes recommendations about the global financial system, has warned that stablecoins could pose a risk to the financial stability and macroeconomy of emerging and developing economies. According to Cointelegraph, the FSB stated in its 2025 annual report that stablecoins circulating across multiple countries could cause more sudden shocks to the financial systems of emerging economies. Key risk factors cited include currency substitution, reduced use of domestic payment systems, weakened monetary policy effectiveness, increased fiscal burdens, and the potential to circumvent capital controls. The board explained that it is necessary to continuously assess vulnerabilities such as liquidity and operational risks, as well as the interconnectedness with the broader financial system, as the stablecoin market evolves.