The Financial Stability Board (FSB) warned in its 2025 annual report that stablecoins denominated in US dollars may pose greater risks to financial stability in emerging markets and developing countries. The report noted that US dollar stablecoins circulating across multiple jurisdictions could lead to currency substitution, decreased use of local payment systems, diminished monetary policy effectiveness, and circumvention of capital controls. The FSB stated that as stablecoins deepen their connections with traditional financial systems, national regulators must continue to monitor relevant liquidity, operational risks, and systemic impacts. (Cointelegraph)