The Bank for International Settlements warned that the spread of stablecoins could fragment the global monetary system and weaken countries\' monetary sovereignty. In its annual economic report, it said private digital tokens lack the institutional requirements to serve as safe and reliable money at scale. The BIS highlighted structural vulnerabilities in reserve asset management and risks to bank funding and credit supply if deposits move into private tokens. It urged faster tokenisation of central and commercial bank money and proposed a regulated infrastructure combining both.