Emerging markets hold more than two-thirds of global stablecoin supply—a powerful signal of demand and a major policy opportunity. Yet many policymakers and central bankers still focus primarily on the risks of dollarization, capital flight, and illicit finance, rather than the transformative potential of stablecoins. A new Coinbase Institute paper makes the case that these risks can be addressed through sound policy, while unlocking enormous benefits: cheaper remittances, near-instant micropayments, more efficient settlement, and new opportunities for tokenized markets and commerce. The answer isn’t to replace domestic payment systems like India’s UPI or Brazil’s PIX, but to build on them - connecting local payment rails to global stablecoin networks, including through well-regulated local-currency stablecoins. The policy choice is clear: establish sensible rules that manage legitimate risks while allowing innovation to flourish. Prohibition won’t keep stablecoins out. It will simply push activity offshore and out of sight. Read the paper: