Key Takeaways:
- The Bank for International Settlement cautions that stablecoins may destabilise credit, policy and finances
- Stablecoins pegged against the dollar dominate and are yet to acquire the essential characteristics of money
- Risks are bank deposit outflows, regulatory gaps and increasing dollarization pressure
Central bankers are raising their eyebrows although stablecoins are increasing rapidly. A new speech from the BIS highlights both the promise and the structural weaknesses of these crypto-native assets.
BIS Flags Risks in Stablecoin Expansion
Speaking at a seminar hosted by the Bank of Japan in Tokyo, Pablo Hernández de Cos laid out a clear message: stablecoins are not ready to function as real m...
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