Risks and Benefits of Stablecoin Adoption in Developing Nations

Global stablecoins in emerging markets offer banking access and remittance services but also pose financial instability risks. Regulation, cooperation, and capacity-building are vital for mitigating challenges.

New stablecoins like Pax Gold and Hong Kong dollar are on the rise. The EU has introduced stablecoin laws, while major stablecoins like USDT, USDC, and BUSD are prevalent.

Swiss regulators stress the risks of default guarantees by stablecoin issuers, aiming to ensure banks have the necessary licenses and deposit coverage. Compliance issues have led to crypto exchanges delisting non-compliant stablecoins.