How do central banks view stablecoins in emerging economies?

Central banks in emerging markets have a mixed stance on stablecoins, viewing them as both an opportunity and a threat.
Central bank perspectives:

• ⚠️ Concerns over financial stability:
  • Central banks worry that large-scale stablecoin adoption could bypass traditional banking systems, reducing their control.
• 📉 Currency substitution fears:
  • In inflation-prone countries, people may prefer stablecoins over local currencies, potentially weakening the national currency.
• ✅ Exploring regulation:
  • Some central banks are creating stablecoin regulations to oversee and manage their use.
• 💡 CBDC competition:
  • Many central banks are developing their own digital currencies (CBDCs) to compete with private stablecoins.

🔍 Example:
The Reserve Bank of India (RBI) has expressed concerns over stablecoins undermining the rupee, while simultaneously developing its CBDC to maintain control.
💡 Pro Tip: Follow local central bank policies to understand how they regulate stablecoins in your region.
👉 Learn more about stablecoin regulations:
Stablecoin Adoption in Emerging Markets