BIS Report: Stablecoins Fail Monetary Standards on Four Dimensions, Posing Bank Funding Pressure and Dollarization Risks for Emerging Economies

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.