BIS study finds stablecoins bypass capital controls

• A Bank for International Settlements study found stablecoins can move across borders more easily than traditional bank deposits.
• Researchers said the features could weaken the effectiveness of capital controls in some countries.
• The report highlighted the need for regulators to adapt as digital asset adoption grows.

A new study from the Bank for International Settlements (BIS) found that stablecoins can bypass capital controls more easily than traditional bank deposits.

The researchers said stablecoins enable faster cross-border transfers and can be accessed outside the conventional banking system, making some capital restrictions harder to enforce.

The BIS said the findings highlight challenges for policymakers as digital assets become more widely used for payments and transfers.

The report noted that stablecoins differ from bank deposits because transactions can occur on public blockchain networks without relying on domestic banking infrastructure.

The researchers said jurisdictions with strict capital controls could face greater pressure if residents increasingly use stablecoins for international transactions.

The BIS added that stronger regulatory frameworks and international cooperation may be needed to address risks while supporting innovation in digital finance.

The study contributes to the wider debate over how stablecoins should be regulated as governments and central banks assess their impact on financial stability and cross-border payments.