BIS Crypto Warning: Stablecoins and Public Ledgers Flawed, Report Says
The Basel-based institution said private digital tokens lack sound-money safeguards and warned that $316 billion in stablecoins could weaken bank funding and credit.
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9 Articles
Stablecoins and Public Ledgers Flawed, Report Says
The Bank for International Settlements (BIS) warned that the rapid expansion of stablecoins risks fragmenting the global monetary system and weakening sovereign monetary control, urging central banks and the financial industry to accelerate the development of tokenized forms of central bank and commercial bank money as a safer alternative. In its Annual Economic Report published Sunday, the Basel-based institution delivered a sharp assessment of…
The Bank for International Settlements said that the stablecoins today look more like ETFs than real money. Its annual report warns about deviations from nominal value, frictions in the exchange and a broader effect: the advance of dollarization and exchange risk in vulnerable economies. *** The BIS states that the stablecoins do not fully fulfill the functions of the money and behave more like investment vehicles. The report notes that tokens c…
BIS warns stablecoins are more like ETFs than actual money, and they're creating FX risk
The Bank for International Settlements (BIS) argues that stablecoins function more like exchange-traded funds than true money, as their prices often deviate from par and redemptions can be slow or uncertain. Stablecoin transfers "settle neither directly nor indirectly on central bank balance…
BIZ does not see private stablecoins as the future of the money system. Instead, it advocates central bank money. Source: BTC-ECHO BTC-ECHO
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