BIS Warns Stablecoins Lack Monetary Properties, Eyes $1–3 Trillion Expansion Risk

According to The Block, the Bank for International Settlements (BIS) issued its 2026 economic report finding that stablecoins lack monetary properties across four key dimensions—unity, resilience, interoperability, and completeness—and function more like exchange-traded funds than payment tools. Even if stablecoins expand to $1–3 trillion in market value, the net economic impact would remain slightly negative while increasing banking stress and constraining credit capacity.

BIS also warned of "stablecoin dollarization" risks in emerging economies that could erode monetary sovereignty. The report recommended establishing a unified ledger anchored to central bank money, combining tokenized central bank reserves and commercial bank deposits as an alternative framework.