BIS Warns USD Stablecoins Can Evade Capital Controls Across 130+ Economies

According to a study published by the Bank for International Settlements on Tuesday, dollar-backed stablecoins can bypass capital controls across more than 130 economies. The BIS found that stablecoins appear largely unaffected by capital flow restrictions as they partly circulate outside the regulatory perimeter, making traditional foreign exchange restrictions less effective against them than conventional bank deposits. The report noted that stablecoins have created a new channel for accessing U.S. dollar liquidity in emerging markets. The total USD stablecoin supply reached $292.6 billion as of Tuesday, up from $253 billion a year ago.
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