BIS Chief Warns of Dollarisation Risks from Stablecoins
The general manager of the Bank for International Settlements (BIS), Pablo Hernández de Cos, has warned that the rapid growth of dollar-pegged stablecoins poses a significant risk to central bank sovereignty, particularly in emerging markets. He highlighted that as these currencies gain traction, local central banks lose control over monetary policy, with the Nigerian central bank being a notable example. The total value of stablecoins has surged over 100% in two years, reaching $320 billion, with 99.6% denominated in US dollars.
Topics: central bank sovereignty dollarisation emerging markets monetary policy stablecoins