The Bank for International Settlements published a study Tuesday warning that dollar-backed stablecoins can bypass capital controls, raising concerns about foreign exchange restrictions in emerging markets. The study analyzed stablecoin flows across more than 130 economies and found stablecoins appear 'largely unaffected by either broad or specific capital flow restrictions' because they partly circulate outside the regulatory perimeter. The BIS warned that foreign exchange restrictions and capital controls are 'less effective' against stablecoins than against conventional foreign currency bank deposits, creating challenges for policymakers as 'dollarization is hard to reverse once established.'
BIS Study Finds Stablecoins Largely Unaffected by Capital Flow Restrictions
The BIS study published Tuesday analyzed stablecoin flows across more than 130 economies. The researchers found that stablecoins appear 'largely unaffected by either broad or specific capital flow restrictions' as they partly circulate outside the regulatory perimeter. According to the report, 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. The BIS stated that the growing adoption of stablecoins has created a new channel for accessing U.S. dollar liquidity, particularly in emerging markets and developing economies.
BIS June 2026 Report Stated Stablecoins Fall Short as Money
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. The latest findings build on the global institution's broader skepticism toward stablecoins.
USD Stablecoin Supply Reached $292.6 Billion as Regulators Establish Frameworks
Stablecoins are finding growing usage in both emerging and established economies. 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.
FAQ
What did the BIS study published Tuesday find about stablecoins and capital controls?
The BIS study analyzed stablecoin flows across more than 130 economies and found that stablecoins appear 'largely unaffected by either broad or specific capital flow restrictions' because they partly circulate outside the regulatory perimeter. The researchers stated that foreign exchange restrictions and capital controls are 'less effective' against stablecoins than against conventional foreign currency bank deposits.
What was the total USD stablecoin supply as of Tuesday?
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.
