If you read more lines, you will understand what they mean by they are talking about the monetary sovereignty of the state, and I will quote the following:
Significant adoption of money not denominated in the sovereign currency could limit the impact of
monetary policy or the ability to support financial stability. A risk of stablecoins, so-called
cryptocurrencies and foreign CBDCs is that domestic users adopt them in significant numbers and use
of the domestic sovereign currency dwindles.
Monetary sovereignty means anything that weakens the central banks power to control currencies, whether it is in cryptocurrencies or foreign currencies or companies control of the monetary mass and its control in the national economy, which are the things that make the central bank unable to control the exchange rate and thus it is easy to manipulate the currencys value .
