Bank for International Settlements stated in its *2026 Annual Economic Report* that stablecoins still exhibit significant flaws in core monetary attributes such as uniformity, resilience, interoperability, and integrity. Their prices may deviate from the pegged assets, and redemption can face friction, making them more akin to ETF shares rather than true payment instruments. The report estimates that even if the stablecoin market expands to $1 trillion to $3 trillion, the net impact on economic output would remain limited, while potentially driving up bank financing costs and weakening credit supply. The report also warns of a potential phenomenon of 'stablecoin dollarization' in emerging markets, where residents hold USD stablecoins as a store of value, thereby affecting capital flows and undermining monetary sovereignty. BIS once again proposed a tokenized 'Unified Ledger' system anchored to central bank money as an alternative to stablecoins. (The Block) https://www.(wublock123.com)/news/bis-stablecoins-not-money-threaten-emerging-market-sovereignty-63628