BIS: Stablecoins Do Not Yet Possess Monetary Attributes; Warns of “Stablecoin Dollarization” Risks in Emerging Markets
According to The Block, the Bank for International Settlements (BIS) stated in its *Annual Economic Report 2026* that current stablecoins fail to meet monetary standards across four key dimensions—unity, resilience, interoperability, and integrity—and their operational model resembles that of an ETF rather than a payment instrument. The report estimates that even if stablecoin market capitalization expands to $1–3 trillion, the net effect on economic output would remain slightly negative, while simultaneously intensifying banks’ funding pressures and undermining their credit capacity.
The BIS also warns of “stablecoin dollarization” risks in emerging economies, which could erode their monetary sovereignty. The report proposes an alternative solution: building a “unified ledger” anchored to central bank money, incorporating both tokenized central bank reserves and commercial bank money—and cites Project Agora, a cross-border payment prototype, as evidence of feasibility.