BIS Warns Stablecoins Fall Short of Trusted Money in Its 2026 Annual Report

The Bank for International Settlements used its 2026 Annual Economic Report to warn that current stablecoins fall short on the key properties of trusted money, with 99.4% pegged to the US dollar in a 320 billion dollar market, and urged fixing their flaws and folding tokenization into a central-bank-anchored unified ledger.

BIS Warns Stablecoins Fall Short of Trusted Money in Its 2026 Annual Report The Bank for International Settlements used its 2026 Annual Economic Report to warn that current stablecoins fall short on the key properties of trusted money, with 99.4% pegged to the US dollar in a 320 billion dollar market, and urged fixing their flaws and folding tokenization into a central-bank-anchored unified ledger. Aaron Rafferty June 29, 2026 Key Takeaways: The Bank for International Settlements, in its 2026 Annual Economic Report published June 28, warned that stablecoins in their current form fall short on the core properties of trusted money. The BIS said 99.4% of fiat-backed stablecoins are pegged to the US dollar in a market worth roughly 320 billion dollars, a concentration it warned could challenge monetary sovereignty in weaker economies. Rather than a ban, the BIS urged fixing stablecoin weaknesses and bringing tokenization into a central-bank-anchored unified ledger. The Bank for International Settlements used its 2026 Annual Economic Report , published June 28, to deliver a blunt warning on stablecoins, arguing that in their current form they lack the institutional foundations that make money trustworthy. The BIS, often called the central bank for central banks, said stablecoins fall short on singleness, the ability to redeem different forms of money at par for central bank money. The report said their current form falls short on the key properties that ensure trust in money and carries structural flaws, from weak protection against financial crime to limited redeemability and interoperability across ledgers. The report found that 99.4% of fiat-backed stablecoins by value are pegged to the US dollar, in a market worth roughly 320 billion dollars at the end of May. High globa