Stablecoins: Alarming Risks to Global Financial Stability Warned by BIS
2025-07-12 12:59:58
Main Idea
The Bank for International Settlements (BIS) warns that the rapid growth of stablecoins poses significant risks to global financial stability and monetary sovereignty, calling for urgent regulatory measures.
Key Points
1. Stablecoins' market value has doubled to $255 billion since 2023, with over 90% pegged to the U.S. dollar.
2. BIS highlights potential spillover effects on traditional financial systems if a major stablecoin faces a crisis.
3. Concentration of stablecoin value in U.S. dollar-pegged tokens could impact global dollar liquidity.
4. Widespread adoption of privately issued stablecoins may erode nations' monetary sovereignty.
5. BIS emphasizes the need for comprehensive and coordinated global regulation, citing the EU's MiCA framework as an example.
Description
BitcoinWorld Stablecoins: Alarming Risks to Global Financial Stability Warned by BIS The world of digital finance is evolving at an unprecedented pace, with stablecoins emerging as a cornerstone of the cryptocurrency ecosystem. These digital tokens, designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar, have seen their market value explode, doubling to an astounding $255 billion since 2023. With over 90% of this market tied to U.S. dollar-pegged tokens, thei...
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