BIS warns stablecoin growth threatens sovereign monetary control, urges tokenized central bank money
By
@cointelegraph
Summary
The Bank for International Settlements (BIS) has issued a warning in its Annual Economic Report that the rapid growth of the $316 billion stablecoin market risks fragmenting the global monetary system and weakening sovereign monetary control. The BIS argues that stablecoins pegged to fiat currencies lack the institutional features needed to serve as safe monetary instruments, and that public blockchains are flawed for mainstream financial use. The report urges central banks and the financial industry to accelerate development of tokenized central bank and commercial bank money as a safer alternative.
Source
bskyBIS warns stablecoin growth threatens sovereign monetary control, urges tokenized central bank moneycointelegraph.comKey quotes
Ā· 3 pulledThe rapid expansion of stablecoins risks fragmenting the global monetary system and weakening sovereign monetary control.
Tokens pegged to fiat currencies lack the institutional features required to serve as safe monetary instruments.
Central banks and the financial industry must accelerate the development of tokenized forms of central bank and commercial bank money as a safer alternative.
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