The Bank for International Settlements (BIS) has warned about the risks that U.S. dollar stablecoins pose to global monetary sovereignty. Its head Pablo Hernandez de Cos reiterated that stablecoins are not a credible payment method at scale and that their growing adoption outside the United States could weaken domestic monetary policies. USD-based stablecoins currently dominate over 90% of the global market supply, led by Tether and Circle. However, stablecoin transactions dropped 37% this summer, declining from $1.8 trillion at the end of June to $1.13 trillion in August. The BIS favors bank-issued tokenized deposits as a safer alternative to preserve sovereign monetary control.
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