Stablecoins Pose Challenge to Government Control Over Fiat Currencies

According to BlockBeats, BlackRock's 2026 Global Market Outlook highlights that stablecoins are set to challenge governmental control over fiat currencies. The rapid adoption of stablecoins could lead to a decline in the use of fiat currencies in emerging markets. This prediction follows a warning from Standard Chartered Bank in October, which suggested that the rise of stablecoins might result in a loss of over $1 trillion in deposits from emerging market bank accounts. Similar challenges are present in the U.S. banking sector. The Genius Act, a landmark stablecoin legislation enacted in July, allows crypto companies to offer yield-like products that traditional banks are prohibited from providing, posing a threat to conventional financial institutions. Samara Cohen, BlackRock's Global Head of Markets Development, stated, "Stablecoins are no longer niche products; they are becoming a bridge between traditional finance and digital liquidity."