BIS Study: Stablecoins Show Little Response to Capital Controls in Emerging Markets, $309.7B Market Cap

According to a recent Bank for International Settlements (BIS) study, dollar-backed stablecoins are creating "digital dollarization" that largely escapes capital controls in emerging markets, unlike traditional foreign-currency bank deposits.

Researchers analyzed stablecoin and foreign-currency deposit inflows across 130+ economies, finding that stablecoin flows showed minimal response to capital controls or foreign-exchange restrictions. The study attributed this to stablecoins "circulating partly outside the regulatory perimeter." BIS warned that stablecoins could undermine monetary sovereignty by allowing households and businesses to shift into dollars outside the banking system. The global stablecoin market cap reached $309.7 billion, up from $260 billion a year ago, with adoption accelerating in emerging markets including Nigeria and Latin America.