The Bank for International Settlements (BIS) has raised concerns that dollar-pegged stablecoins are creating a new form of "digital dollarization," which is largely insensitive to capital controls in emerging markets. BIS researchers analyzed data from over 130 economies, noting that both foreign currency deposits and stablecoin inflows increase during periods of macroeconomic stress. However, stablecoin flows appear largely unaffected by capital controls or foreign exchange restrictions, potentially due to their partial exclusion from regulatory oversight. The BIS warns that stablecoins could weaken monetary sovereignty, urging policymakers to develop new tools to address financial stability risks.