Researchers found dollar-backed stablecoins are less affected by capital controls than traditional bank deposits, raising new questions about monetary sovereignty in emerging markets. Researchers at the Bank for International Settlements (BIS) found that dollar-backed stablecoins are creating a new form of “digital dollarization” that appears largely unaffected by capital controls, particularly in emerging markets. The new study suggests governments may have less ability to curb stablecoin adoption than traditional foreign-currency bank deposits. BIS researchers analyzed foreign-currency deposits and dollar-pegged stablecoin inflows across more than 130 economies, finding that both tend to increase during periods of macroeconomic stress. Unlike traditional bank deposits, however, stablecoin flows showed little response to capital controls or other FX restrictions. The authors said this likely occurs because “stablecoins are partly circulating outside the regulatory perimeter.” Read more
The integration with validator Yuma gives millions of MEXC users access to Bittensor, an AI-focused blockchain whose ecosystem now spans 128 specialized subnets. Cryptocurrency exchange MEXC has launched staking support for Bittensor’s native TAO token, allowing users to earn rewards by helping secure one of the largest decentralized artificial intelligence networks. Bittensor validator Yuma announced Tuesday that MEXC has integrated its validator infrastructure to support TAO staking for the exchange’s reported 40 million users. Yuma participates in Bittensor’s consensus mechanism by evaluating the performance of network subnets — specialized AI applications that perform specific machine learning tasks — and assigning weights that help determine how staking rewards are distributed. The companies said the integration is intended to expand access to the Bittensor ecosystem and increase participation in the network. Read more
Bitcoin and crypto joined US stocks in brushing off US-Iran war escalation and the threat of fresh trade tariffs before the end of the month. Bitcoin (BTC) built on gains at Tuesday’s Wall Street open as crypto echoed resilient US stock markets. Key points: Data from TradingView showed BTC/USD approaching $67,000, closing in on seven-week highs. Read more