The Bank for International Settlements (BIS) has highlighted concerns over stablecoins in its Annual Economic Report, stating that they lack essential monetary attributes such as unity, resilience, interoperability, and integrity. The BIS noted that stablecoin prices often deviate from their pegs in secondary markets and face redemption frictions, likening them more to ETF shares than payment instruments. The report estimates that even if stablecoins reach a market cap of $1 to $3 trillion, their net impact on economic output would be negligible and could increase bank financing costs, thereby suppressing credit. The BIS also warned of the "dollarization" risk posed by stablecoins in emerging markets, where widespread adoption of dollar-pegged stablecoins could undermine local currency sovereignty. Currently, about 99% of fiat-backed stablecoins are pegged to the dollar, with USDT and USDC dominating the market, totaling approximately $320 billion. The BIS reiterated its vision for a "unified ledger" to integrate tokenized central bank money and commercial bank deposits within a regulated framework, citing the "Agorá project" involving eight central banks and over 40 institutions as evidence of this model's feasibility.