Stablecoins Serve as Economic Lifeline in Volatile Markets

Stablecoins, cryptocurrencies tied to stable assets such as the US dollar, are frequently regarded as a means of reducing volatility. However, they change and become dramatically significant depending on the region. In volatile or inflation-prone economies – especially in some parts of the Global South, such as Africa, South America and Southeast Asia – stablecoins provide important financial stability. Ben El-Baz emphasized that in these markets users care much less about earning yield, and much more about having access to dollar stability and cheap transactions. This makes stablecoins key tools for retaining purchasing power and reducing expensive remittance fees.

Key Risks Highlighted

The post also highlights certain notable risks around stablecoins. Ben El-Baz highlighted three key issues: counterparty risk (the risk that the entity backing the coin will fail and the coin will fail to be pegged), lack of transparency by stablecoin issuers, and a growing regulatory push on stablecoins.

🌍 Stablecoins mean different things in different markets.

💬 As our Head of Global Expansion Ben El-Baz @ben_el_baz shared with @CryptoAmb:
“In volatile or inflation-prone economies, users care less about yield and more about dollar stability and affordable transactions.”

He… https://t.co/X4NvSEx9cI

— HashKey Global (@HashKey_Global) September 9, 2025

Stablecoins are by no means esoteric tools. Recent data shows the total coin market cap has reached $286.502 billion, with USDT (Tether) alone representing almost 59% of the stablecoin market. This large market presence highlights the rising significance of crypto traders in both traditional and decentralized finance sectors. Despite their growing popularity, uncertainty in regulation, with certain actions like the GENIUS Act in the U.S. potentially impacting their future regulation, could mean that regulations will be more stringent going forward, affecting the way these digital assets work across the globe.

What’s Next

HashKey Global encourages readers to check out full CryptoAmb article in order to get a comprehensive analysis of the global stablecoin adoption trends. The wider piece goes into depth into how these assets are bridging the gap between traditional finance and new digital solutions, especially in underserved markets.