The Bank for International Settlements (BIS) said stablecoins do not meet key standards required of money and operate more like exchange-traded funds than payment instruments, according to its 2026 Annual Economic Report.
According to ChainCatcher, the BIS assessed stablecoins against four dimensions—singleness, elasticity, interoperability, and integrity—and found they currently fall short on all four.
The report estimated that even if stablecoin market capitalization expands to between $1 trillion and $3 trillion, the net effect on economic output would still be slightly negative. It added that such growth could intensify pressure on bank funding and weaken credit capacity.
The BIS also warned that emerging economies face a risk of “stablecoin dollarization,” which could erode monetary sovereignty.
As an alternative, the report recommended building a “unified ledger” anchored in central bank money that combines tokenized central bank reserves with commercial bank money, citing the Project Agora cross-border payments prototype as evidence of feasibility.
Weatherly
