The Bank for International Settlements (BIS) has warned that the rapid growth of US dollar-backed stablecoins could pose systemic risks to global financial stability.
BIS chief Pablo Hernández de Cos said stablecoins like USDT and USDC act more like investment assets than cash, raising concerns about liquidity and potential market stress.
Central bankers urge international regulatory coordination, highlighting risks of bank runs, regulatory arbitrage, and increased dollarisation, especially in emerging economies.
Can Europe's strict rules prevent the continent from being dominated by US dollar stablecoins in daily commerce?
Are central bankers' warnings a valid fear of crisis or a move to protect traditional banking from superior technology?
As 'digital dollarization' accelerates, what can emerging markets do to prevent losing control over their economies?
With new laws banning interest, can stablecoins still compete with banks' own tokenized deposits for institutional capital?
With Tether rated like a junk bond, could its potential collapse trigger a wider financial crisis as regulators fear?
As Visa adopts stablecoins for payments, are we building a new global financial system on private digital dollars?