Dollarization--the adoption of the dollar as both the unit of account and the cash medium of exchange in countries outside the United States--has become a reality recently in two Latin American countries (Ecuador and El Salvador) and is being considered in several others, including Argentina and Mexico. Proponents of dollarization argue that it will help to discipline government fiscal policy and reduce financial market risks. Opponents believe dollarization would add risk to the economy by making a commitment that is unlikely to be maintained. This panel will bring together opposing sides in the dollarization debate to discuss its likely consequences for financial stability and interest rates on Latin American debt.