The Bank for International Settlements has raised fresh concerns about the impact of dollar-backed stablecoins on financial controls in emerging markets. In a study published Tuesday, the institution said these tokens appear to be largely unaffected by broad or targeted capital flow restrictions, suggesting they can create a new route for accessing U.S. dollar liquidity.
According to the report, the BIS examined stablecoin activity across more than 130 economies and concluded that foreign exchange restrictions and capital controls are less effective against stablecoins than they are against conventional foreign currency bank deposits. The researchers said this is partly because stablecoins circulate outside the usual regulatory perimeter, which makes them more difficult for policymakers to contain.
Policy risks for emerging economies
The BIS warned that the growth of stablecoins could complicate efforts by governments in developing markets to manage dollar demand and limit capital outflows. It noted that once dollarization becomes established, it can be difficult to reverse, implying that policymakers may need to rethink how they respond to the spread of these assets.
The latest study fits into the BIS’s broader skepticism toward stablecoins. In June 2026, the organization said stablecoins still do not meet the key monetary properties of singleness, elasticity, interoperability, and integrity. At the same time, stablecoins continue to gain traction in both emerging and developed markets as regulators in the U.S., EU, Japan, and elsewhere work on frameworks to bring them into the regulated financial system. The total supply of USD stablecoins reached $292.6 billion on Tuesday, up from $253 billion a year earlier, according to The Block’s data dashboard.
Source: theblock.co
