Bank for International Settlements stated in the "2026 Annual Economic Report" that stablecoins still have obvious deficiencies in core monetary attributes such as uniformity, resilience, interoperability, and integrity. Their prices may deviate from the pegged asset and redemption faces friction, making them closer to ETF shares than true payment instruments. The report estimates that even if the stablecoin market scale expands to 1 trillion to 3 trillion US dollars, the net impact on economic output remains limited, and it may increase bank funding costs and weaken credit supply. The report also warns that emerging markets may experience "stablecoin dollarization," where residents hold dollar-pegged stablecoins as a store of value, thereby affecting capital flows and weakening monetary sovereignty. The BIS once again proposes a tokenized "Unified Ledger" system anchored to central bank money as an alternative to stablecoins. (The Block)