Argentine President Javier Milei acknowledged in a recent interview that his dollarization push has encountered a major roadblock: citizens prefer the peso. His endogenous dollarization policy failed, leading to U.S. Treasury intervention to stabilize the peso.
Argentina President Javier Milei admits public reluctance is the biggest hurdle to dollarization. Despite allowing dollar transactions and a monetary competition policy, Argentines still prefer the peso. The US Treasury stepped in to stabilize the exchange rate, casting doubt on Milei’s campaign promise.
President Javier Milei acknowledged in a TV interview that the main obstacle to dollarizing Argentina is the public's refusal to adopt the US dollar. His endogenous dollarization policy failed, and the US Treasury had to intervene to stabilize the peso.
Argentina President Javier Milei said the main obstacle to dollarization is public rejection, as citizens continue using the peso despite policies allowing dollar-based transactions and broader monetary competition.
The Bank for International Settlements (BIS), in its latest annual report, argues that stablecoins function more like exchange-traded funds (ETFs) than genuine currencies, citing frequent price deviations from peg, redemption frictions, and lack of central bank money support. The report particularly warns that dollar-pegged stablecoins are accelerating de facto dollarization in fragile economies, undermining local currencies and bypassing capital controls. BIS emphasizes that stablecoins are not settled on central bank balance sheets and cannot guarantee par-value exchange across issuers and blockchain networks, revealing a fundamental gap between stablecoins and fiat money.
国际清算银行（BIS）在2026年年度经济报告中指出，稳定币在单一性、弹性、互操作性和完整性方面均未达到货币标准，更类似ETF份额。报告显示，全球稳定币市值约3200亿美元，99%以上锚定美元，主要由USDT和USDC主导。BIS模型预测，即使规模扩大至1-3万亿美元，对经济产出净影响仍为轻微负面，主因银行融资成本上升和信贷供给减弱。报告特别警告新兴市场可能出现“稳定币美元化”，侵蚀货币主权，并推荐通过“统一账本”整合代币化央行储备、商业银行货币与受监管私人货币。
In its 2026 Annual Economic Report, the Bank for International Settlements (BIS) assessed that current stablecoins do not meet monetary standards in four key dimensions: singleness, resilience, interoperability, and integrity. Their operational model resembles an ETF rather than a payment instrument. The BIS estimates that even if stablecoin market capitalization expands to $1-3 trillion, the net effect on economic output would still be slightly negative, while intensifying bank funding pressures and weakening credit capacity. The report warns of a 'stablecoin dollarization' risk in emerging economies that could erode monetary sovereignty, and recommends a 'unified ledger' anchored by central bank money as an alternative.
