BIS Warns 90% Dollar Stablecoin Dominance Risks Digital Dollarization
Updated
Updated · AMBCrypto News · Aug 29
BIS Warns 90% Dollar Stablecoin Dominance Risks Digital Dollarization
3 articles · Updated · AMBCrypto News · Aug 29
Summary
Pablo Hernández de Cos said at Jackson Hole that USD-linked stablecoins could weaken countries’ monetary sovereignty, arguing they are not a credible payment method at scale.
More than 90% of stablecoin supply is dollar-based, led by Tether and Circle, and BIS says broad use outside the United States could erode domestic monetary policy.
USDT already has wide use across South America, especially in economies with strong dollar demand or weak local currencies, with Bolivia even considering it legal tender.
BIS instead backed tokenized deposits as a safer on-chain alternative, while banks including JPMorgan test them and the ECB pushes central bank money onto blockchain rails.
Stablecoin transaction volume fell 37% this summer to $1.13 trillion in August from $1.8 trillion in late June, though entrenched dollar stablecoins still lead adoption.