Stablecoins, while influential in the financial sector, pose significant risks to financial stability in developing countries, according to a report by Standard Chartered. The report highlights concerns that stablecoins could lead to substantial deposit outflows from emerging market banks, potentially weakening local central banks. It estimates that up to $1 trillion in deposits could migrate to stablecoins by 2028, threatening the credit systems in these regions.
Standard Chartered Warns of Stablecoin Risks to Emerging Markets
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