Geopolitics complicates stablecoin adoption, BIS paper finds
Weaponisation of financial infrastructure may hinder digital dollarisation, say researchers
The countries most vulnerable to stablecoin-driven dollarisation are also the least equipped to respond to it, BIS researchers have found, though US sanctions are spurring the search for alternative payment solutions.
In their paper, The impact of stablecoins on the international monetary and financial system, published on May 5, Iñaki Aldasoro, Jon Frost and Hiro Ito say stablecoins “are already facilitating a form of digital currency substitution in specific contexts”.
They write that “digital
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