Bank for International Settlements · 2026 · Report · BIS Annual Economic Report 2026, Chapter III
The BIS's flagship annual report argues that stablecoins as currently designed fail to deliver the singleness, elasticity, and integrity of money, and that the path forward is tokenising central bank and commercial bank money on unified ledgers rather than relying on private stablecoins.
Key findings
- Stablecoins operate without the institutional underpinnings — central bank backing, guaranteed par redeemability, and an elastic supply of liquidity — that give money its singleness.
- Stablecoins on permissionless chains, with pseudonymity and unhosted wallets, create AML/CFT and financial-integrity gaps and regulatory-arbitrage risk.
- Fragmentation across multiple blockchain networks undermines the interoperability and network effects needed for money-like functionality.
- Modelling suggests the net macroeconomic effect of widespread stablecoin adoption is modest, but reserve composition matters: government-bill holdings pose different financial-stability risks than bank deposits or central bank reserves.
- In emerging markets, foreign-currency stablecoin adoption threatens monetary sovereignty and can erode the domestic currency's unit-of-account role if substitution deepens from store-of-value into transaction settlement.
- The recommended path is to integrate tokenisation into the regulated two-tier system via 'unified ledgers' hosting tokenised central bank reserves, commercial bank deposits, and other supervised private monies.
Julian Fernandez Mejia · 2024 · Working paper
The work explores the determinants and consequences of foreign exchange rate fluctuations on the economy, focusing on interest rate parity deviations and capital flow responses. It investigates stablecoins as a means to streamline transactions and mitigate volatility.
Key findings
- Exchange rates influence trade dynamics and the vulnerability of economies to external shocks.
- Stablecoins are designed to streamline transactions and overcome volatility constraints of traditional exchange rates.
- The research reveals the sensitivity of both traditional and electronic currencies to external and internal factors.
Gordon Y. Liao, John Caramichael · 2022 · Working paper · Federal Reserve International Finance Discussion Papers No. 1334
Fed staff analysis of how stablecoin growth could affect bank funding and credit, depending on reserve design.
Key findings
- Stablecoins backed by commercial-bank deposits or Treasuries have very different effects on credit intermediation.
- A two-tiered / narrow-bank reserve model can preserve credit while supporting stablecoin growth.
Ladislav Krištoufek · 2021 · Journal article · Finance research letters
The work investigates the relationship between stablecoins and major cryptoassets, finding that stablecoins do not boost the prices of other cryptoassets. Instead, stablecoin issuances respond to price changes in other cryptoassets, indicating a reflection of demand for investment in cryptomarkets.
Key findings
- There is no evidence of stablecoins boosting the prices of other cryptoassets.
- Increased stablecoin issuances react to price changes in other cryptoassets.
Tobias Adrian, Tommaso Mancini-Griffoli · 2019 · Report · IMF FinTech Note No. 19/01
Introduces a taxonomy of money and argues privately issued digital money (e-money / stablecoins) could rapidly displace bank deposits.
Key findings
- Proposes a taxonomy distinguishing e-money/stablecoins from bank deposits and central-bank money.
- Adoption of e-money could be rapid via network effects and erode bank deposit funding (disintermediation).
- Coins the risk of 'digital dollarization' in economies with weak currencies.