Stablecoins Undermine Government Control in Currency Crises
A new study from the New York Federal Reserve has found that dollar stablecoins are more likely to flow into wallets tied to countries experiencing currency or banking crises.
The researchers studied nine episodes across eight countries between 2021 and 2025, including monetary disruptions, banking restrictions, sanctions, and devaluations affecting Argentina, Egypt, Iran, Myanmar, Nigeria, Russia, Turkey, and the United Kingdom.
The study linked Ethereum Name Service registrations carrying country signals with transfer histories for 19 major dollar-pegged stablecoins. The findings showed that tagged wallets recorded both a higher probability of receiving stablecoins and larger receipt volumes during crisis weeks.
The research suggests that demand for blockchain-based dollars rises when confidence in domestic financial arrangements comes under pressure, complicating the capital-control playbook for governments.
The growth of the stablecoin market, which has already exceeded $300 billion and is expected to reach trillions of dollars before the end of the decade, could make this alternative payment rail increasingly relevant during future currency crises.