Local Currency Preservation and the Limits of Dollarisation
24 Jul 2026
Dr. Bhaskar Dasgupta, Chairman, Middle East Stablecoin Association
Analyzing the Impact of Digital Dollarisation on Emerging Economies
Findings from BIS research on stablecoin dollarisation highlight how digital currency adoption varies across economic regions. While pegged monetary regimes in the GCC provide stability, economies facing currency volatility may experience accelerated dollarisation through stablecoins, influencing local monetary policy, capital controls, and central bank reserve management.
Developing Multilateral Local Currency Settlement Rails
To prevent complete dependence on single-currency rails across international trade corridors, regional financial leadership must advance the adoption of trusted AED and local currency stablecoins. Designing interoperable networks where regional counterparties settle transactions using regulated digital versions of local currencies protects economic diversity and strengthens cross-border trade framework resilience.
Local Currency Preservation and the Limits of Dollarisation
Dr. Bhaskar Dasgupta, Chairman, Middle East Stablecoin Association
Analyzing the Impact of Digital Dollarisation on Emerging Economies
Findings from BIS research on stablecoin dollarisation highlight how digital currency adoption varies across economic regions. While pegged monetary regimes in the GCC provide stability, economies facing currency volatility may experience accelerated dollarisation through stablecoins, influencing local monetary policy, capital controls, and central bank reserve management.
Developing Multilateral Local Currency Settlement Rails
To prevent complete dependence on single-currency rails across international trade corridors, regional financial leadership must advance the adoption of trusted AED and local currency stablecoins. Designing interoperable networks where regional counterparties settle transactions using regulated digital versions of local currencies protects economic diversity and strengthens cross-border trade framework resilience.