BlockBeats News, September 26th, according to CoinDesk, credit rating giant Moody’s reported that the adoption of cryptocurrency in emerging markets threatens currency sovereignty and financial resilience. The risk is especially pronounced as cryptocurrency usage expands from investment to savings and remittances. Moody’s pointed out that the penetration rate of USD stablecoins is increasing, and if more pricing and settlement are conducted in foreign currency rather than the domestic currency, it will weaken the currency transmission mechanism, creating pressure similar to “cryptodollarization” in which there is lower transparency and regulatory visibility.
Furthermore, cryptocurrency, aided by anonymous wallets and offshore exchanges, provides a new channel for capital flight, undermining exchange rate stability. By 2024, the number of cryptocurrency holders is estimated to be around 562 million people, a 33% increase year-on-year.
