Stablecoins are exacerbating currency volatility in emerging markets, according to Bitwise CIO Matt Hougan and Research Director Ryan Rasmussen. In a Bankless interview, they noted that while stablecoins offer a hedge against inflation for individuals in high-inflation countries, they also contribute to capital outflows and dollarization at a macro level, undermining currency stability and central bank control. As stablecoins spread, some countries may increase regulation or even ban them. The discussion highlighted that the core issue lies not with stablecoins but with fiscal disorder and long-term inflation, with stablecoins amplifying existing monetary vulnerabilities in these markets.