Well, butter my biscuit and call me surprised! South Africa’s central bank has chimed in on Standard Chartered’s little doomsday ditty, confirming that stablecoins are about to shake up emerging-market banks like a hound dog with a flea problem. 🐕💨
Standard Chartered, those wise old owls of finance, reckon digital dollars could swoop in and snatch a cool $1 trillion from EM bank deposits over the next three years. That’s right, folks-consumers and corporates are packing their savings and heading for the stable, USD-pegged hills. 🏃💰
Standard Chartered’s Canary in the Coal Mine: EM Banks in Hot Water
In a research note that’s got more red flags than a bullfight, Standard Chartered pointed out 48 countries sitting on a financial seesaw of opportunity and vulnerability. 🌍⚖️
As BeInCrypto reported, Geoff Kendrick, the bank’s Global Head of Digital Assets Research, put Egypt, Pakistan, Bangladesh, and Sri Lanka in the hot seat as the most likely to lose their deposits faster than a gambler at a rigged roulette table. 🎰💸
“Stablecoins are growing like kudzu, and we reckon there’ll be some mighty unexpected outcomes. First up? EM banks might find their vaults emptier than a politician’s promise,” they told BeInCrypto with a wink. 😉
Even in high-risk economies, these outflows could nibble away at about 2% of total deposits. Sounds small, you say? Well, that’s enough to rattle countries already juggling weak currencies and fiscal deficits like a circus performer with too many plates. 🎪💸
Madhur Jha, Head of Thematic Research, chimed in, noting that stablecoins are speeding up a shift that’s as inevitable as a Twain pun: banking functions are hopping over to non-bank digital platforms faster than a frog on a hot skillet. 🐸🔥
South Africa Sounds the Alarm: Crypto’s Wild West Ways
South Africa’s Reserve Bank (SARB) has thrown its hat into the ring, warning that stablecoins and crypto assets are financial stability’s new wild horses-hard to tame and full of surprises. 🐎💥
According to their 2025 Financial Stability Review, stablecoin trading volumes have shot up from 4 billion rand in 2022 to a whopping 80 billion rand ($4.6 billion) by October 2025. That’s growth that’d make a jackrabbit jealous. 🐇💨
The central bank also warned that crypto’s borderless, digital nature could slip through exchange control laws like a greased pig at a county fair. 🐖🚫
Herco Steyn, SARB’s lead macroprudential specialist, didn’t mince words. He said without proper regulations, authorities are flying blind in these fast-paced markets-like trying to herd cats in a hurricane. 🐱🌪️
Regulatory Gaps: The Wild West of Crypto
South Africa’s scrambling to draft new rules to rein in cross-border crypto transactions, but major platforms like Luno, VALR, and Ovex are already serving 7.8 million users and holding $1.5 billion in custody. That’s a lot of eggs in one digital basket. 🧺💰
The shift to USD-pegged stablecoins shows folks prefer a smooth ride over the rollercoaster of traditional crypto like Bitcoin or Ether. Who can blame ’em? 🎢💵
Standard Chartered’s warning, paired with South Africa’s nod, paints a picture clearer than a Twain quip: EM banking systems are in for a bumpy ride. Economies running twin deficits-Türkiye, India, Brazil, South Africa, and Kenya-are particularly vulnerable to capital flight fueled by stablecoins. 🌪️💸
So, policymakers in emerging markets are at a crossroads, trying to balance innovation and stability like a tightrope walker with a gusty wind. One wrong step, and it’s a long way down. 🌬️🤹♂️
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2025-11-26 13:17