Key Takeaways BIS researchers Hofmann, Mehrotra and Paulick studied 130+ economies and stablecoin data from 184 countries since 2017. Capital controls cut bank dollarization by up to 32 percentage points but showed no effect on stablecoin inflows. Stablecoin market capitalization has nearly tripled since 2023, led by USDT and USDC. A Bank for International Settlements (BIS) working paper published in July 2026 by BIS economists Boris Hofmann, Aaron Mehrotra, and Jan Paulick compares the rise of stablecoins in emerging and developing economies to “deposit dollarisation,” the long-standing practice of holding savings in foreign-currency bank accounts. The paper draws on data …