The Bank for International Settlements (BIS) has highlighted concerns over stablecoins in its *Annual Economic Report 2026*, stating that they do not meet essential monetary standards such as unity, resilience, interoperability, and integrity. The BIS likens their operational model to that of an ETF rather than a traditional payment instrument. The report warns that even with a potential market capitalization of $1–3 trillion, stablecoins could negatively impact economic output and increase funding pressures on banks, thereby weakening their credit capacity. Additionally, the BIS cautions against the risks of "stablecoin dollarization" in emerging markets, which could threaten monetary sovereignty. As a solution, the BIS suggests developing a "unified ledger" system anchored to central bank money, integrating tokenized central bank reserves and commercial bank money, with Project Agora cited as a viable prototype.