Woofun AI reports that Bank for International Settlements researchers identified dollar-pegged stablecoins as drivers of "digital dollarization" in emerging markets. Analysis of data from over 130 economies reveals that while foreign currency deposits and stablecoin inflows rise during macroeconomic stress, stablecoin flows remain largely unresponsive to capital controls or foreign exchange restrictions. The BIS attributes this insensitivity to stablecoins operating partially outside the regulatory perimeter, noting they may undermine monetary sovereignty and require new policy tools to manage financial stability risks.