BIS Warns Dollar Stablecoins Are Slipping Past Emerging-Market Capital Controls

The Bank for International Settlements found stablecoin flows barely respond to the currency restrictions that constrain bank deposits, deepening dollarization risk.

The Bank for International Settlements (BIS), the Basel-based institution owned by central banks, reported that dollar-backed stablecoins are largely insensitive to capital controls, raising the risk that they weaken monetary sovereignty in…