Emre Yumlu 
Global credit rating agency Moody’s has issued a new report highlighting the risks that cryptocurrencies could pose to emerging economies. The analysis points to potential challenges for monetary sovereignty and financial stability as digital asset adoption accelerates worldwide.
Beyond Investment: Everyday Use of Crypto
Moody’s noted that cryptocurrencies are no longer confined to speculative investments. They are increasingly being used for savings and cross-border transfers. This shift amplifies their impact on domestic financial systems, making their influence more significant than before.
Stablecoins and the Threat of “Crypto-ization”
One of the report’s key concerns is the growing use of dollar-backed stablecoins. By encouraging transactions and pricing in foreign currencies rather than local money, stablecoins could weaken central banks’ ability to implement effective monetary policy. Moody’s suggested this trend may erode transparency and regulatory oversight, fostering a form of unofficial dollarization — or what it called “crypto-ization.”
New Channels for Capital Flight
The report also underlined how cryptocurrencies, through anonymous wallets and offshore exchanges, provide new pathways for capital flight. Such flows may destabilize exchange rates and put additional pressure on already fragile economies.
Regional Adoption Patterns
According to Moody’s, crypto adoption is most concentrated in regions like Southeast Asia, Africa, and Latin America. The drivers include high inflation, depreciating local currencies, and limited access to traditional banking services. In contrast, advanced economies are experiencing adoption led by institutional investment, clearer regulations, and market consolidation.
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