In a new report, the credit rating agency said digital assets are no longer confined to speculative investing but are increasingly being used for day-to-day savings and remittances.

The rise of dollar-pegged stablecoins is of particular concern. Moody’s said their growing use in pricing and payments risks undermining local currencies and could replicate the effects of dollarization without official oversight. This shift may disrupt central banks’ ability to guide monetary policy, while also reducing transparency for regulators.

The agency also pointed to capital flight as a mounting issue. With anonymous wallets and offshore exchanges, individuals in fragile economies now have easier ways to move wealth abroad, putting pressure on exchange rates and financial stability.

Emerging markets in Southeast Asia, Africa, and Latin America have seen the fastest uptake of crypto, fueled by inflation, currency volatility, and limited access to traditional banking. By contrast, adoption in wealthier economies is being driven by institutional investors and clearer regulations.

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Moody’s estimates that more than half a billion people will be using cryptocurrencies globally by 2024, reflecting double-digit annual growth. The report frames this as both an opportunity for innovation and a challenge to sovereign monetary systems struggling to retain control.

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