In several countries across the Global South, cryptocurrencies, particularly dollar-backed stablecoins, are gaining ground as an alternative to national currencies thanks to their accessibility. This rise is also worrying central banks: by slipping outside traditional banking channels, these currencies loosen their grip on what circulates within their borders, and with it, the monetary sovereignty of states.
Why are stablecoins so appealing across the Global South?
A state that no longer controls what is traded in its name loses part of its levers: adjusting a policy rate, managing an exchange rate, or simply tracking flows it never sees pass through.
In several countries known as the "Global South," cryptocurrencies (and particularly stablecoins, often dollar-backed) are emerging as an alternative to national currencies. Their main appeal is their accessibility.
Stablecoins thus embody “an accessible and attractive alternative to national currencies.”
A threat to states’ monetary sovereignty?
This rise, however, comes at a cost: it threatens the monetary sovereignty of the countries concerned. By slipping outside traditional banking channels, these digital currencies loosen central banks’ grip on what actually circulates within their borders.
A state that no longer controls what is traded in its name loses part of its levers: adjusting a policy rate, managing an exchange rate, or simply tracking flows it never sees pass through. The issue then goes beyond technicalities: it touches on governments’ very capacity to steer their own economies.
Accessibility or risk: where does the balance lie?
In countries known as the "Global South," cryptocurrencies, and particularly stablecoins (often dollar-backed), are seen as an accessible and attractive alternative to national currencies. This preference stems less from speculation than from the search for an instrument perceived as more stable than the local currency, within reach of a wide public thanks to nothing more than a smartphone.
This rise comes at a cost: it weakens states’ monetary sovereignty, as their grip on the creation and circulation of money is called into question. For now, between easier access for populations and the challenge posed to central banks, neither clearly has the upper hand.
Between easier access to a currency perceived as more stable and the weakening of the levers states hold over their own money, no single answer stands out today. What is taking shape is a question built to last: it concerns how each country intends to keep control over what circulates in its name.
Read Also on La Sultane
After the World Cup: the FTF, a mirror of Tunisia’s crisis
Glam & Goodies Mini Market: the pop-up spotlighting Hammamet’s creators
Harry Styles crosses the Berlin Marathon finish line in under three hours
Chery Arrizo 8: the new premium saloon causes a sensation in Tunisia
