South Africa Confirms Standard Chartered’s Troubling Stablecoin Warning

South Africa's Reserve Bank (SARB) has confirmed concerns raised by Standard Chartered regarding the destabilizing potential of stablecoins on emerging-market (EM) banks. Standard Chartered projects that digital dollars could siphon up to $1 trillion from EM deposits over three years, with countries like Egypt, Pakistan, Bangladesh, and Sri Lanka being most exposed. While outflows might only be about 2% of total deposits in high-risk economies, this movement could destabilize nations already facing fiscal deficits and weak currencies. SARB noted that stablecoin adoption in South Africa has surged, with trading volumes reaching nearly 80 billion rand ($4.6 billion) by October 2025. The central bank warned that the borderless nature of crypto could allow circumvention of exchange control laws, emphasizing the need for comprehensive regulation. The confirmation highlights a systemic risk for economies running twin deficits, urging policymakers to balance digital finance growth with stability frameworks.

(Source：BeInCrypto)