South Africa Confirms Standard Chartered’s Troubling Stablecoin Warning
South Africa’s central financial institution has echoed a warning from Standard Chartered, confirming that the fast rise of stablecoins may destabilize emerging-market (EM) banks.
Standard Chartered initiatives that digital {dollars} may drain as a lot as $1 trillion from EM financial institution deposits over the following three years, as customers and corporates shift financial savings towards secure, USD-pegged alternate options.
Standard Chartered’s Alarm: Emerging-Market Banks at Risk
In a latest analysis observe, Standard Chartered highlighted 48 nations alongside a possibility–vulnerability continuum.
As BeInCrypto reported, the financial institution’s Global Head of Digital Assets Research, Geoff Kendrick, recognized Egypt, Pakistan, Bangladesh, and Sri Lanka as most exposed to deposit outflows.
“As stablecoins develop, we predict there will probably be a number of surprising outcomes, the primary of which is the potential for deposits to depart EM banks,” they instructed BeInCrypto.
Even in high-risk economies, these outflows may signify roughly 2% of whole deposits. While this represents solely a small proportion in isolation, it may probably destabilize nations already dealing with weak currencies and monetary deficits.
Likewise, Madhur Jha, Head of Thematic Research, famous that stablecoins are accelerating a structural shift: banking features are more and more transferring to non-bank digital platforms.
South Africa Confirms Growing Risk
South Africa’s Reserve Bank (SARB) has highlighted the monetary stability dangers posed by stablecoins and different crypto belongings.
According to the 2025 Financial Stability Review, stablecoin adoption has surged, with buying and selling volumes climbing from 4 billion rand in 2022 to almost 80 billion rand ($4.6 billion) by October 2025.
The central financial institution warned that crypto’s absolutely digital and borderless nature may enable it to avoid trade management legal guidelines.
Herco Steyn, SARB’s lead macroprudential specialist, emphasised the urgency. He famous that with out complete laws, authorities lack adequate oversight of those fast-paced markets.
Regulatory Gaps and Market Implications
South Africa is actively developing new rules to convey cross-border crypto transactions underneath regulatory supervision. Despite this, major platforms like Luno, VALR, and Ovex now serve 7.8 million customers and maintain roughly $1.5 billion in custody.
The development towards USD-pegged stablecoins displays a market choice for decrease volatility in comparison with conventional crypto belongings, equivalent to Bitcoin or Ether.
Standard Chartered’s warning, mixed with South Africa’s affirmation, highlights the broader threat to EM banking programs.
Economies operating twin deficits, together with Türkiye, India, Brazil, South Africa, and Kenya, are significantly weak to capital flight fueled by stablecoins.
Therefore, policymakers in rising markets could also be at a crossroads. As stablecoin adoption accelerates, nations should strike a stability between innovation and stability, implementing frameworks that stop systemic dangers whereas supporting the expansion of digital finance.
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