FX controls have minimal impact on stablecoin dollarisation – study
BIS working paper argues that growing use of crypto assets presents policy challenges for EDMEs
Foreign exchange-related restrictions appear to have little effect on dollarisation resulting from the adoption of stablecoins, a working paper by the Bank for International Settlements has found.
In the paper, published today (July 21), authors Boris Hofmann, Aaron Mehrotra and Jan Paulick note that the market capitalisation of stablecoins – a type of crypto asset designed to maintain a stable value relative to a reference currency, usually the dollar – has nearly tripled since 2023. They also
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