The Bank for International Settlements (BIS) has issued a blunt warning that the fast-growing stablecoin market could undermine core pillars of the global monetary system—particularly sovereign control and the ability of banks to fund lending to the real economy. In its Annual Economic Report, published Sunday, the Basel-based institution assessed the stablecoin sector at roughly $316 billion and argued that most tokens pegged to fiat currencies do not have the institutional features needed to function as safe, reliable money at scale.