On June 25, according to The Block, the Bank for International Settlements (BIS) stated in its annual report released on Tuesday that Stablecoins failed to pass the “three key tests” of becoming the cornerstone of the currency: singularity, elasticity, and integrity.
The report points out that Stablecoins, despite their programmability, anonymity, and ease of access for new users, cannot pass stress tests due to their construction, as assets like Tether’s USDT require ‘full prepayment’ to increase. At the same time, since Stablecoins are usually issued by centralized entities and have inconsistent standards, they cannot achieve the ‘singleness’ of currency coins.
BIS also warned that Stablecoins could undermine government coin sovereignty through ‘implicit dollarization’ and could facilitate criminal activities. Nevertheless, the BIS remains optimistic about the tokenization of central bank reserves, commercial bank coins, and other traditional assets, seeing it as a ‘revolutionary innovation’.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
