[FSB Report Warns Dollar-Pegged Stablecoins Exacerbate Financial Risks in Emerging Markets] The Financial Stability Board (FSB) 2025 annual report highlights that dollar-denominated stablecoins circulating across multiple jurisdictions may pose financial stability risks to emerging markets and developing economies. These risks include currency substitution, reduced usage of local payment systems, and diminished effectiveness of domestic monetary policies. The FSB also noted that the application of stablecoins and crypto assets in the real economy remains limited and urged regulators to monitor their associated risks with core financial markets. Additionally, the FSB plans to focus on topics such as digital innovation in crypto assets, monitoring vulnerabilities in stablecoins, and cross-border payment issues in 2026.