Summary
The Bank for International Settlements argued in its annual report that stablecoins still fall short of money on singleness, elasticity, and integrity, warning of currency substitution risks in emerging markets.
Details
According to The Block, the report — regarded as a bellwether for global central banks — notes that while stablecoins have achieved significant growth in payments and transfers, their underlying mechanisms are insufficient to guarantee absolute value stability. The report specifically flagged the rapid penetration of stablecoins in emerging market economies, warning this could undermine local central banks’ monetary policy transmission.
The BIS recommended that regulators strengthen reserve audit requirements for stablecoin issuers and called for a cross-border coordinated regulatory framework.
Editor: GoodInfo Global News Team