Bank for International Settlements: Stablecoins do not have the characteristics of currency, warns of the risk of emerging markets facing "stablecoin dollarization."

BlockBeats News, June 29th—The Bank for International Settlements (BIS) released its 2026 annual economic report at the Sunday conference in Basel, offering a systematic critique of stablecoins. The report argues that existing stablecoins exhibit significant deficiencies in the four key attributes of currency: singularity, elasticity, interoperability, and integrity. Stablecoins often deviate from their pegged value, face significant redemption friction, and are more akin to ETF shares rather than true means of payment.

As of the end of May, the total market capitalization of stablecoins is around $320 billion, with over 99% pegged to the US dollar, led by USDT and USDC. According to the BIS model, even if the stablecoin market expands to $1 to $3 trillion, the net impact on economic output would be minimal, possibly slightly negative, as it would elevate bank financing costs and weaken credit creation capacity.

The report also specifically warns of the risk of "dollarization through stablecoins"—if residents of emerging economies use US dollar stablecoins as a store of value, it would disrupt domestic capital flows and erode monetary sovereignty. The BIS once again advocates for a token-based "universal ledger" anchored by central bank money and cites the Agora cross-border payment project, involving eight central banks and over 40 private entities, as evidence of feasibility.