The Bank for International Settlements (BIS) published a report examining 68 stablecoins and concluding that none of them can remain stable and fully utilized at all times.
None of the Stablecoins Will Be Fully Used
The report states that existing stablecoins cannot be a store of value and a reliable means of payment.
The report highlights the challenges stablecoins face in maintaining their peg to fiat currencies, which is essential for their use as a medium of exchange.
The report also states that stablecoins are not backed by any government or central authority, making them vulnerable to market fluctuations and regulatory risks.
The BIS report raises concerns about the stability of the cryptocurrency market and the potential risks that stablecoins pose to financial stability.
It calls for a coordinated global approach to regulating stablecoins to ensure they are safe and reliable for users.
The report concludes that stablecoins are still in the early stages of their development and more research and innovation is needed to address the challenges they face.
He also suggests that central banks consider developing their own digital currencies to provide a safe and reliable alternative to stablecoins.
*This is not investment advice.