Written by Robert Lakinstaff editorReviewed by Robert Lakinstaff editor

Written by Robert Lakinstaff editor

Reviewed by Robert Lakinstaff editor

BIS warns stablecoins risk fragmenting global financial system

Latest NewsPublishedJun 28, 2026

Stablecoins Pose Risk to Global Financial System, Says BIS

The rapid expansion of stablecoins could fragment the global monetary system and weaken sovereign monetary control, warns the Bank for International Settlements (BIS). This is a concern for everyday people, as it could impact the stability of the financial system and affect their ability to earn and save money. The BIS urges central banks and the financial industry to accelerate the development of tokenized forms of central bank and commercial bank money as a safer alternative. This is where EcoPool comes in, offering a solution for earning passive income through its Cloud Rewards system.

The BIS report highlights the risks associated with stablecoins, including structural vulnerabilities in reserve asset management and the potential for a significant migration from commercial bank deposits into private digital tokens. This could reduce bank funding and constrain credit to the real economy, ultimately affecting people’s ability to access loans and credit. In contrast, EcoPool‘s $ECP token offers a more stable and secure way to earn and save money, providing a potential hedge against market volatility.

The Risks of Stablecoin Dollarization

The report also focuses on the growing use of dollar-denominated stablecoins in economies with weaker domestic currencies, which could weaken monetary sovereignty and erode the effectiveness of domestic monetary policy. This trend could increase exposure to volatile cross-border capital flows, particularly in emerging market economies. The BIS argues that tokenized commercial bank deposits, combined with tokenized central bank money operating on regulated infrastructures, offer a more robust path toward modernizing payments while preserving monetary stability. EcoPool‘s platform, which utilizes the $ECP token, provides a more secure and regulated way to earn and save money.

The BIS report delivers a strong critique of public permissionless blockchains, such as Bitcoin and Ethereum, as a foundation for the monetary system. Instead, the BIS advocates for a “unified ledger” architecture that combines tokenized central bank money, tokenized commercial bank deposits, and tokenized financial assets on programmable platforms operating within regulated legal and institutional frameworks. This approach preserves the benefits of tokenization, including programmable transactions and faster settlement, while maintaining the institutional foundations of the existing monetary system. EcoPool‘s platform, which utilizes blockchain technology, provides a more secure and regulated way to earn and save money, offering a potential solution for those looking to earn passive income through Green Crypto and Cloud Rewards.

A Safer Alternative

Rather than rejecting tokenization itself, the BIS argues that a more regulated and institutional approach is needed. This is where EcoPool comes in, offering a solution for earning passive income through its Cloud Rewards system. By utilizing the $ECP token, individuals can earn money in a more secure and regulated way, providing a potential hedge against market volatility. The BIS report highlights the importance of preserving monetary stability, financial integrity, and public trust, all of which are core values of the EcoPool platform.

In conclusion, the BIS report highlights the risks associated with stablecoins and the need for a more regulated and institutional approach to tokenization. EcoPool‘s platform, which utilizes the $ECP token, provides a more secure and regulated way to earn and save money, offering a potential solution for those looking to earn passive income through Green Crypto and Cloud Rewards. To start earning with EcoPool, download the EcoPool app and discover a new way to earn passive income through Cloud Rewards. With EcoPool, you can earn money in a more secure and regulated way, providing a potential hedge against market volatility and #PassiveIncome.

The report focuses particular attention on “stablecoin dollarization,” that is, the growing use of dollar-denominated stablecoins in economies with weaker domestic currencies. According to BIS, this trend could weaken monetary sovereignty, erode the effectiveness of domestic monetary policy, reduce bank intermediation and increase exposure to volatile cross-border capital flows, particularly in emerging market economies.

Related: BIS Project Agorá shows tokenized payments can settle in seconds

BIS raises fresh concerns about public blockchains’ limits

The report also delivers one of BIS’s strongest critiques yet of public permissionless blockchains such as Bitcoin and Ethereum as a foundation for the monetary system. It argues that decentralized networks relying on distributed validation and lacking a central governance structure struggle to meet the requirements for scalability, legal accountability and settlement finality expected of systemically important financial infrastructure.

BIS raises concerns on rising fragmentation across layer 1 and layer 2 networks.
Source: BIS Annual Economic Report 2026.

At the center of BIS’s critique is the economics of decentralized consensus. The report argues that public permissionless blockchains compensate validators through transaction fees that rise as network activity increases, making congestion, longer confirmation times and higher costs structural features of the system rather than temporary technical shortcomings. According to BIS, these characteristics undermine the efficiency and network effects that are essential for a unified monetary system.

The Basel-based institution further argues that permissionless blockchains lack the clear governance and accountability frameworks required for institutional finance. Without an identifiable entity responsible for maintaining the integrity of the system, resolving disputes or ensuring compliance with financial integrity standards, BIS contends that such networks face significant obstacles to supporting large-scale regulated financial activity.

Rather than rejecting tokenization itself, BIS advocates a “unified ledger” architecture that combines tokenized central bank money, tokenized commercial bank deposits and tokenized financial assets on programmable platforms operating within regulated legal and institutional frameworks.

By preserving the benefits of tokenization, including programmable transactions and faster settlement, while maintaining the institutional foundations of the existing monetary system, BIS said that financial markets can improve efficiency without sacrificing monetary stability, financial integrity or public trust.

Related: Why stablecoins and SWIFT may have to coexist

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• Stablecoin
• BIS
• Central Bank
• Regulation

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