Bitwise CIO Matt Hougan and Head of Research Ryan Rasmussen highlighted on December 16 that stablecoins, while providing a hedge against inflation, could exacerbate currency volatility in emerging markets. Speaking on Bankless, they noted that stablecoins might intensify capital outflows and dollarization, thereby undermining currency stability and central bank control. However, they emphasized that stablecoins are not the root cause of these issues but rather amplify existing vulnerabilities caused by fiscal mismanagement and persistent inflation.
Stablecoins May Exacerbate Currency Volatility in Emerging Markets
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