Why Stablecoins Are Intensifying Currency Turmoil in Emerging Markets On December 16, Bitwise Chief Investment Officer Matt Hougan and Research Director Ryan Rasmussen shared in an interview with Bankless that stablecoins provide individuals in high-inflation countries with a tool for hedging risks. However, on a macro level, they may exacerbate capital outflows and dollarization, weakening currency stability and central bank control. As stablecoins spread from the bottom up, some countries may tighten regulations or even impose bans. The discussion suggests that the root issue isn't stablecoins themselves but rather fiscal disorder and prolonged inflation. Stablecoins merely amplify the existing currency vulnerabilities in emerging markets. Source: Bankless