Moody's Warns of Cryptocurrency Risks to Emerging Markets

According to PANews, Moody's, a leading credit rating agency, reported on Thursday that the adoption of cryptocurrencies in emerging markets poses a threat to monetary sovereignty and financial resilience. The risks are particularly heightened as cryptocurrency usage expands from investment to savings and remittances. Moody's highlighted that the increasing penetration of dollar stablecoins could weaken monetary transmission mechanisms if pricing and settlement increasingly occur in foreign currencies, leading to 'cryptocurrencyization' pressures similar to unofficial dollarization, with reduced transparency and regulatory visibility. Furthermore, cryptocurrencies, through anonymous wallets and offshore exchanges, offer new avenues for capital flight, undermining exchange rate stability source: https://www.binance.com/en/square/post/30203098328345?utm_source=BinanceNewsRSS