BIS study says stablecoins evade capital controls

A new study from the Bank for International Settlements has found that dollar-backed stablecoins are creating a fast-growing channel for digital dollarization that can bypass traditional capital controls, posing a significant challenge to monetary sovereignty, particularly in emerging economies. The research, published on July 21, 2026, analyzed data from more than 130 countries.

The study compared inflows into dollar-pegged stablecoins with traditional foreign-currency bank deposits. It found that both forms of dollarization tend to increase during periods of macroeconomic stress, such as sovereign crises, banking problems, and high inflation. However, a critical divergence occurs when governments impose capital controls or foreign exchange restrictions. While such policies can curb flows into traditional bank deposits, stablecoin inflows remain largely unaffected.

Researchers argue this is because stablecoins can circulate outside the conventional regulatory perimeter, moving through crypto exchanges, peer-to-peer markets, and self-hosted wallets without necessarily passing through domestic banking systems. This bearer-like quality makes restrictions designed for bank accounts...