TechFlow News, June 29: According to The Block, the Bank for International Settlements (BIS) stated in its Annual Economic Report 2026 that stablecoins currently fail to meet monetary standards across four key dimensions—singularity, resilience, interoperability, and integrity—and their operational model resembles that of an exchange-traded fund (ETF) more closely than that of a payment instrument. The report estimates that even if stablecoin market capitalization expands to between $1 trillion and $3 trillion, the net effect on economic output would remain slightly negative, while simultaneously intensifying banks’ funding pressures and weakening their credit capacity.
The BIS also warns of “stablecoin dollarization” risks in emerging economies, which could erode their monetary sovereignty. The report proposes an alternative solution: anchoring to central bank money and building a “unified ledger” encompassing tokenized central bank reserves and commercial bank money, with Project Agora’s cross-border payment prototype serving as proof of feasibility.
