The Bank for International Settlements said that dollar-backed stablecoins could bypass capital controls, raising concerns regarding foreign exchange restrictions in emerging markets.
In a study published Tuesday, the BIS analyzed stablecoin flows across more than 130 economies and found that stablecoins appear “largely unaffected by either broad or specific capital flow restrictions,” as they partly circulate outside the regulatory perimeter.
Notably, the researchers suggested that foreign exchange restrictions and capital controls — traditional tools governments use to limit money flowing in or out of their countries — are “less effective” against stablecoins than against conventional foreign currency bank deposits.
According to the report, the growing adoption of stablecoins has created a new channel for accessing U.S. dollar liquidity, particularly in emerging markets and developing economies. The BIS warned that policymakers in emerging markets may need to rethink their strategies as “dollarization is hard to reverse once established.”
Still skeptical
The latest findings build on the global institution’s broader skepticism toward stablecoins. In June 2026, the BIS reiterated in its annual report that stablecoins still fall short of money in singleness, elasticity, interoperability, and integrity, which it says are the foundational properties that any monetary system must keep.
Meanwhile, stablecoins are finding growing usage in both emerging and established economies, as regulators in the U.S., EU, Japan, and other regions are establishing dedicated frameworks to bring stablecoins into the regulated financial system. The total USD stablecoin supply reached $292.6 billion as of Tuesday, up from $253 billion a year ago, according to The Block’s data dashboard.
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