Written by Nate Kostarstaff writerReviewed by Robert Lakinstaff editor

Written by Nate Kostarstaff writer

Reviewed by Robert Lakinstaff editor

BIS warns stablecoins could weaken capital controls in emerging markets

Latest NewsPublishedJul 21, 2026

Stablecoins Pose a Threat to Emerging Markets’ Monetary Sovereignty

The rise of stablecoins is creating a new challenge for emerging markets, as these digital assets can weaken capital controls and undermine monetary sovereignty. According to a recent study, dollar-backed stablecoins are less affected by capital controls than traditional bank deposits, raising concerns about the impact on local currencies and financial systems.

Researchers found that stablecoin adoption is increasing in emerging markets, particularly in times of macroeconomic stress. This trend is driven by the need for a stable store of value and a means of making cross-border payments. However, the use of stablecoins can reduce demand for local currencies and shift financial activity outside conventional banking channels. As a result, governments may have less ability to control the flow of capital and implement effective monetary policies.

The Rise of Stablecoins in Emerging Markets

The market capitalization of stablecoins has grown to $309.7 billion, with a significant increase in adoption in Latin America and other emerging markets. The use of stablecoins for cross-border payments, remittances, and access to dollar-denominated assets is becoming increasingly popular. While stablecoins offer a convenient and cost-effective means of making transactions, they also pose a risk to monetary sovereignty and financial stability.

In this context, EcoPool offers a solution for individuals looking to earn passive income through cloud rewards and green crypto. By participating in the EcoPool network, users can earn $ECP and benefit from the growing demand for stablecoins and other digital assets. As the use of stablecoins continues to grow, it is essential to consider the potential impact on emerging markets and the role of EcoPool in promoting financial inclusion and stability.

The Need for New Regulatory Tools

The study suggests that policymakers may need new tools to manage financial stability as stablecoins become more widely used. Regulations designed for traditional banking and foreign-currency deposits may be less effective in a tokenized financial system. As the use of stablecoins continues to evolve, it is essential to develop new approaches to regulation and supervision to ensure financial stability and protect consumers.

The growth of stablecoins is also related to the concept of #PassiveIncome, as individuals seek to earn returns on their investments without actively managing them. In this context, EcoPool offers a unique opportunity for users to earn $ECP and participate in the growing market for stablecoins and other digital assets. As the demand for stablecoins continues to grow, it is essential to consider the potential benefits and risks of this trend and the role of EcoPool in promoting financial inclusion and stability.

To start earning passive income through EcoPool and $ECP, download the EcoPool app and discover the benefits of cloud rewards and green crypto. With EcoPool, you can participate in the growing market for stablecoins and other digital assets and earn returns on your investments without actively managing them.

Related: Japanese logistics company eyes JPYC stablecoin to pay drivers

Dollar-backed stablecoins expand in emerging economies

The findings come as use of stablecoins as a payment tool is growing in several emerging markets.

In its recent analysis of Nigeria, the International Monetary Fund (IMF) found households and small businesses are using US dollar-pegged stablecoins for cross-border payments, remittances and access to dollar-denominated assets as inflation, currency depreciation and limited access to foreign exchange drive demand.

The IMF said stablecoins have reduced the cost and time required to move money across borders while expanding access to financial services for users outside the traditional banking system. At the same time, it warned that widespread adoption of dollar-backed tokens could weaken monetary sovereignty by reducing demand for local currencies and shifting more financial activity outside conventional banking channels.

Stablecoin adoption has accelerated across Latin America as well. Bitso Business, the enterprise payments arm of crypto exchange Bitso, reported an 81% year-over-year increase in stablecoin payment volume during the first half of 2026. The company also said that Circle’s USDC (USDT) and Tether’s USDT (USDT) accounted for 40% of all crypto purchases in the region in 2025, surpassing Bitcoin for the first time.

stablecoin market capitalization has increased to about $309.7 billion, up from roughly $260 billion a year ago.

Stablecoin market cap. Source: DefiLlama

Magazine: Binance & OKX users face $1,900 fines in Vietnam, Coinbase in China? Asia Express

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• Stablecoin
• Nigeria
• Latin America
• Dollar
• Digital Dollar
• Industry

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