[Moody's Warns of Risks from Cryptocurrency Adoption in Emerging Markets Potentially Undermining Financial Stability] Moody's highlighted in its latest report that the widespread adoption of cryptocurrencies in emerging markets could pose threats to monetary sovereignty and financial resilience. The risks are particularly pronounced when cryptocurrency usage expands beyond investment into areas such as savings and cross-border remittances. The report emphasized that the rising penetration of USD stablecoins could weaken monetary transmission mechanisms, leading to a phenomenon akin to unofficial dollarization, referred to as "cryptocurrency-ization," while transparency and regulatory visibility remain limited. Furthermore, cryptocurrencies, through anonymous wallets and offshore exchanges, provide new avenues for capital flight, exacerbating risks to exchange rate stability. Moody's noted that the growth in cryptocurrency holdings in emerging markets is primarily driven by inflation, currency depreciation, and limited access to banking services, with concentrations in Southeast Asia, Africa, and Latin America. As of 2024, the global number of cryptocurrency holders has reached 562 million, a year-on-year increase of 33%.