Stablecoins Threaten Central Banks' Ability to Contain Currency Crises

A New York Federal Reserve study has found that dollar stablecoins are more likely to flow into wallets tied to countries experiencing currency or banking crises.

The researchers analyzed nine episodes across eight countries between 2021 and 2025, including Argentina, Egypt, Iran, Myanmar, Nigeria, Russia, Turkey, and the United Kingdom. They linked Ethereum Name Service registrations carrying country signals with transfer histories for 19 major dollar-pegged stablecoins.

During crisis weeks, tagged wallets recorded both a higher probability of receiving stablecoins and larger receipt volumes. The researchers' findings provide evidence for a growing challenge facing central banks in economies under financial stress.

The study suggests that the growth of the stablecoin market could make it harder for governments to contain currency crises in the future. The market has already grown beyond $300 billion and is expected to reach trillions of dollars before the end of the decade, according to Chainalysis projections.