International settlements bank (BIS) researchers released a report saying that USD stablecoins are giving rise to a new kind of “digital dollarization,” and that this phenomenon is, to a large extent, not constrained by traditional capital controls. The study compared data from more than 130 economies and found that while both stablecoins and traditional FX deposits increase during periods of macroeconomic stress, traditional bank deposits are clearly affected by capital controls, whereas stablecoins, partly circulating at the edge of regulation, show little to no reaction to capital controls and foreign-exchange restrictions. BIS warned that this could weaken the monetary sovereignty of emerging markets by bypassing the traditional banking system. (Cointelegraph)