BIS warns stablecoins risk fragmenting global financial system, urges CBDC alternatives

The Bank for International Settlements warned that the $316B stablecoin market risks fragmenting the global monetary system, urging central banks to accelerate tokenized CBDC and commercial bank money instead.

• BIS says stablecoins lack institutional features for safe, reliable money at scale and could reduce bank funding.
• The report warns of 'stablecoin dollarization' weakening monetary sovereignty in emerging economies.
• BIS also critiques public blockchains like Bitcoin and Ethereum, arguing they can't meet requirements for systemically important infrastructure.
• The institution urges policymakers to accelerate tokenized central bank and commercial bank money as alternatives.

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Last updated 29 Jun 2026