The Rise of Stablecoins in Unstable Times

This report explains how stablecoins maintain their pegs (fiat-collateralized, crypto-collateralized, and algorithmic mechanisms), outlines their growing use as stores of value and payment tools in countries facing hyperinflation or political instability (e.g., Lebanon, Argentina, Turkey, Afghanistan), highlights regional drivers such as migration and banking restrictions, and examines both legitimate use cases and misuse — notably sanctions evasion, laundering schemes, and state-linked efforts in Iran, Russia, and North Korea — while noting regulatory and operational risks to their stability.