Researchers on the Financial institution for Worldwide Settlements (BIS) have discovered that dollar-backed stablecoins are creating a brand new type of “digital dollarization” that’s largely unaffected by capital controls, particularly in rising markets.
New analysis means that governments could have much less potential to curb the adoption of stablecoins in comparison with conventional international foreign money financial institution deposits.
BIS researchers analyzed international foreign money deposits and dollar-pegged stablecoin inflows in additional than 130 international locations and located that each have a tendency to extend in periods of macroeconomic stress. Nonetheless, not like conventional financial institution deposits, stablecoin flows have been largely unresponsive to capital controls and different trade controls. The authors stated this seemingly happens as a result of “stablecoins partially flow into exterior regulatory boundaries.”
Stablecoins may nonetheless undermine financial sovereignty by permitting households and companies to maneuver to the greenback exterior the banking system, particularly in rising markets the place currencies are weak or entry to dependable monetary providers is restricted, the examine stated.
Regardless of these dangers, the researchers discovered little proof that dollarization of deposits weakens financial coverage transmission, though international locations with bigger international foreign money deposits face a barely better threat of rising inflation.
BIS stated its findings counsel that policymakers might have new instruments to handle monetary stability as stablecoins turn out to be extra in style, arguing that laws designed for conventional banking and international foreign money deposits could turn out to be much less efficient in a tokenized monetary system.
Greenback-backed stablecoins are increasing in rising international locations
The findings come as the usage of stablecoins as fee instruments will increase in a number of rising markets.
In a current evaluation on Nigeria, the Worldwide Financial Fund (IMF) discovered that households and small companies are utilizing stablecoins pegged to the US greenback for cross-border funds, remittances and entry to dollar-denominated belongings as demand will increase resulting from inflation, foreign money depreciation and restricted entry to international foreign money.
The IMF stated stablecoins cut back the associated fee and time required to maneuver funds throughout borders, whereas increasing entry to monetary providers for customers exterior the normal banking system. On the similar time, it warned that widespread adoption of dollar-backed tokens may weaken financial sovereignty by lowering demand for native currencies and transferring extra monetary exercise exterior conventional banking channels.
Stablecoin adoption can also be accelerating throughout Latin America. Bitso Enterprise, the enterprise funds arm of cryptocurrency trade Bitso, reported an 81% year-over-year enhance in stablecoin fee volumes within the first half of 2026. The corporate additionally has Circle’s USDC ($USDT) and tether $USDT ($USDT) will account for 40% of all cryptocurrency purchases within the area in 2025, surpassing Bitcoin for the primary time.
The market capitalization of stablecoins rose to about $309.7 billion from about $260 billion a yr in the past.
Stablecoin market capitalization. sauce: Defilama
