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The Basel-based institution said that private digital tokens fall short of the requirements for sound money and urged policymakers to accelerate work on tokenized forms of central bank and commercial bank money.<\/p>\n
The Bank for International Settlements (BIS) warned that the rapid expansion of stablecoins risks fragmenting the global monetary system and weakening sovereign monetary control, urging central banks and the financial industry to accelerate the development of tokenized forms of central bank and commercial bank money as a safer alternative.<\/p>\n
In its Annual Economic Report published<\/a> Sunday, the Basel-based institution delivered a sharp assessment of the app<\/a>roximately $316 billion stablecoin market, arguing that tokens pegged to fiat currencies lack the institutional features required to serve as safe, reliable money at scale. <\/p>\n BIS pointed to structural vulnerabilities in reserve asset management and warned that a significant migration from commercial bank deposits into private digital tokens could reduce bank funding and constrain credit to the real economy.<\/p>\n Read more<\/p>\n<\/p>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more News<\/a> articles, you can visit our General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n