Currency stability in emerging markets triggers a much more complex chain reaction than people have imagined.

Recently, experienced industry analysts pointed out a phenomenon worth noting: the large-scale influx of currency stability is disrupting the monetary policy framework of developing countries. This is not just a technological issue but also involves deep financial stability concerns.
Specifically, the rapid growth of currency stability ( especially USDT, USDC, and other dollar-based assets ) provides residents of emerging markets with a new way to avoid their local currencies. As pressure on local currency depreciation increases, users find it easier to switch to currency stability as a hedge, which in turn exacerbates selling pressure on local currencies—creating a continuous cycle.
For central banks, this means some traditional monetary policy tools become ineffective. You cannot effectively control the money supply through interest rate adjustments because the currency stability system operates independently. It's like setting the room temperature, but someone is opening the window from inside.
A deeper issue is the shift in power structures. Currency stability issuers ( usually American companies ) actually act as a "shadow central bank" in emerging markets, and this process is less transparent and not closely regulated.
Moving forward, central banks in emerging markets need to rethink the effectiveness of their financial policies while considering how to adapt to this decentralized financial power. This is an invisible war in the redistribution of monetary power.