Stablecoins in the Global South: disruption, inclusion or dependence?

This paper examines how dollar-pegged stablecoins are reshaping financial practices across the Global South and asks to what extent their adoption represents a disruptive tool for financial inclusion for peripheral actors versus a mechanism that entrenches structural dependency and undermines policy autonomy. In many developing economies, persistent currency volatility, inflation, and limited access to formal banking have accelerated stablecoin use for remittances, savings, and micro-payments. Drawing on evidence from multiple regions, the study analyses benefits including faster cross-border transfers, lower transaction costs and new participation in digital financial networks. At the same time, it evaluates structural risks emerging from this expansion, including pressures on monetary sovereignty, potential displacement of local currencies by dollar-pegged assets, regulatory challenges and profit asymmetries that advantage private issuers while offering limited redistributive gains. Particular attention is given to how reliance on externally issued, dollar-backed stablecoins may reinforce financial dependency and constrain policy autonomy. By examining both practical uses and systemic consequences, the study assesses whether adoption expands economic agency and financial inclusion or reproduces global financial hierarchies in digital form.