[BIS: Stablecoins Lack Key Currency Attributes, May Threaten Emerging Market Monetary Sovereignty] According to The Block, the Bank for International Settlements (BIS) stated in its *Annual Economic Report* that stablecoins still fall short in key currency attributes such as "singleness, resilience, interoperability, and integrity." Their prices tend to deviate from their peg in secondary markets, and the redemption process involves friction, making them "more akin to ETF shares rather than a means of payment." The report estimates that even if the market capitalization of stablecoins reaches $1 trillion to $3 trillion, their net impact on economic output would be "minimal" and could suppress credit by increasing bank financing costs. BIS warned that emerging markets face the risk of "stablecoin dollarization," where widespread holding of dollar-pegged stablecoins by residents could undermine local monetary sovereignty. The report noted that currently, approximately 99% of fiat-backed stablecoins are pegged to the U.S. dollar, with USDT and USDC dominating the market, which has a total capitalization of about $320 billion.