BIS Study Raises Concerns About the “Store of Value” of 68 Stablecoins
The Bank for International Settlements has raised concerns that the 68 stablecoins in the market “do not live up to their names”. Read on....
- The Bank for International Settlements (BIS) has expressed concerns about the stability and reliability of 68 stablecoins.
- The BIS research found that none of the stablecoins evaluated have met the prerequisites to be a secure store of value.
- Fiat-backed stablecoins performed better in maintaining parity with their pegged closing prices compared to crypto-backed and commodity-backed stablecoins.
- The report highlights prominent stablecoin assets such as Tether, USD Coin, and Binance USD.
- Stablecoins are marketed as new forms of money that protect investors' assets against market fluctuations.
- The crash of Terra's stablecoin USDT had a significant impact on the market in 2022, leading to a decline in the overall crypto market valuation.
- The BIS emphasizes the need for appropriate regulation and supervision to prevent stablecoins from compromising the safety and efficiency of payments and the financial system.
The article raises concerns about the stability and reliability of stablecoins and emphasizes the need for proper regulation and supervision. It highlights the challenges faced by stablecoins in maintaining their pegged values and the potential impact on the financial system.