⚡ Bank for International Settlements Criticizes Stablecoins
posted 9 Nov 2023
The Bank for International Settlements (BIS) has deemed stablecoins a dangerous means of storing value in its research report.
The BIS notes that from early 2019 to September 2023, fiat-backed stablecoins maintained their peg only 94% of the time.
Cryptocurrency or commodity-backed stablecoins fared worse, with rates of 77% and 50%, respectively.
The
report also faults the lack of standard reporting on reserves,
questioning the capacity of stablecoins to maintain their value amid
financial turbulence.
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