BIS: Stablecoins bypass capital controls in emerging markets

The Bank for International Settlements published a study finding that dollar-backed stablecoins are contributing to a form of “digital dollarization” in emerging markets and often move outside existing capital controls. Researchers compared flows of dollar-pegged stablecoins with foreign-currency bank deposits across more than 130 economies.

The analysis shows both foreign-currency deposits and stablecoin inflows tend to rise during periods of inflation, currency depreciation or other macroeconomic stress. Unlike foreign-currency bank deposits, stablecoin inflows did not fall when countries imposed capital controls or foreign-exchange limits. The authors wrote that this pattern likely reflects that “stablecoins are partly circulating outside the regulatory perimeter.”

The report notes that stablecoins allow households and businesses to hold and transfer dollar-denominated value without relying on the traditional banking system. The finding applies mainly to economies with weak local currencies or limited access to reliable financial services, where demand for dollar-denominated stores of value is higher.

The International Monetary Fund’s review of Nigeria documented growing use of dollar-pegged stablecoins by households and small businesses for cross-border payments, remittances and access to dollar assets as inflation and foreign-exchange shortages constrain local currency use and formal channels. The IMF observed that stablecoins can lower costs and speed up cross-border transfers while expanding access to financial services for users outside regular banks.

Commercial data point to rising stablecoin activity in parts of Latin America. Bitso Business reported an 81% year-over-year increase in stablecoin payment volume in the first half of 2026 and said Circle’s USDC and Tether’s USDT accounted for about 40% of crypto purchases in the region in 2025. Global stablecoin market capitalization rose to roughly $310 billion from about $260 billion a year earlier.

The BIS study recommends enhanced monitoring of token flows, development of regulatory tools aimed at tokenized dollar use and greater international cooperation on standards that extend beyond traditional banking frameworks. Policymakers in emerging markets face the operational question of how to enforce capital controls and manage foreign-exchange stability when dollar-denominated tokens can be accessed and moved with fewer intermediaries and less transparency than conventional foreign-currency deposits.