BIS study finds dollar-backed stablecoins bypass capital controls across 130+ economies, challenging emerging-market policy tools as supply hits $292.6B.
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The Bank for International Settlements has a message for central bankers who think capital controls still work in a stablecoin world. They don't.
A study published Tuesday analyzed stablecoin flows across 130-plus economies. The BIS found that dollar-backed stablecoins are "largely unaffected by either broad or specific capital flow restrictions." The reason is straightforward. Stablecoins partly circulate outside the regulatory perimeter, the central bankers' institution said, making foreign exchange restrictions less effective than they are against conventional bank deposits.
The growing adoption of stablecoins has created a new channel for accessing dollar liquidity, particularly in emerging markets and developing economies, the report said. The BIS warned that policymakers in those markets may need to rethink their strategies. "Dollarization is hard to reverse once established," the study added.
The findings build on the BIS's broader skepticism toward stablecoins. In its June 2026 annual report, the institution said stablecoins still fall short of the foundational properties any monetary system must keep: singleness, elasticity, interoperability, and integrity.
The timing matters. Stablecoin supply has grown sharply even as regulators in the U.S., EU, Japan, and other regions are crafting dedicated frameworks to bring them into the regulated financial system. Total USD stablecoin supply reached $292.6 billion as of Tuesday, up from $253 billion a year ago, The Block's data dashboard shows. Visa and BlackRock's stablecoin push has topped crypto KOL sentiment, signaling that institutional interest is accelerating adoption.
For emerging-market central banks, the BIS study presents a practical problem. Capital controls are one of the few tools they have to manage currency volatility and prevent capital flight. If stablecoins can bypass those controls, the traditional policy playbook loses its force. The study's authors did not offer specific policy recommendations. The implication is clear enough. Either stablecoins come into the regulatory perimeter, or the tools to manage capital flows will keep eroding.
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