The adoption of global stablecoins in emerging economies involves significant financial risks and regulatory challenges. This is stated in the report of the SPS at the G20.
Analysts have noted the growing popularity of "stable coins" in these states. They cited the limited access of the population to banking services, large flows of transfers from developed countries and the volatility of the exchange rates of national monetary units as the reasons.
"The collapse and debacle of some stablecoins after the start of the turmoil in the cryptocurrency market in 2022 highlights the potential fragility of assets that are not properly developed and regulated," the report says.
The instability of tokens poses significant risks for emerging economies, where oversight opportunities are often limited, experts stressed.
Experts have listed several key problems associated with the introduction of stablecoins:
The growing potential of illegal financing;data privacy concerns;cybersecurity risks;threat to financial integrity;the need to strengthen consumer and investor protection.Stablecoins are also capable of disrupting market integrity, fiscal and general macroeconomic stability.
The mentioned risks are global in nature. However, emerging economies are most vulnerable due to barriers to effective regulatory measures.
The authors of the report recommend that policy makers and supervisors create a sound regulatory framework that will facilitate cross-border cooperation. They also advised to increase local opportunities for regulating "stable coins".
Earlier, Paxos introduced the Lift Dollar stablecoin, which gives owners the right to receive a "risk-free" yield of ~ 5%. The first market will be Argentina, known for chronic devaluation of the national currency and high inflation.
https://forklog.com/news/bernstein-segment-stejblkoinov-vyrastet-do-2-8-trln-za-pyat-letRecall that in July 2023, the SPS developed recommendations on a global regulatory framework for digital assets. Later, the G20 member countries approved the proposals.