Shafaqna English– The head of the Bank for International Settlements (BIS)—an organization that serves as an umbrella institution for the world’s central banks—has stated that stablecoins lack the necessary credibility to serve as a widely adopted payment mechanism on a large scale.
In his view, tokenized deposits present a far more convincing alternative for capturing the advantages offered by distributed ledger technology and digital asset innovation.
Stablecoins are digital assets that are explicitly designed to maintain price stability, typically by pegging their value to a reserve asset such as a national currency or a basket of commodities.
Despite their growing adoption, they have become a source of worry for many financial authorities, particularly in jurisdictions outside the United States. The primary apprehensions center on the threats they pose to macroeconomic stability and their potential exploitation as vehicles for illicit financial flows and money laundering.
Source: Reuters