BIS Calls for Tokenized Unified Ledger as Stablecoins Face Toughest Analysis
The Bank for International Settlements (BIS) has provided its strongest warning yet on the systemic risks postured by stablecoins, prompting international policymakers to speed up the approach a tokenized monetary system built on main bank-issued money. In a chapter previewing its Yearly Economic Report 2025, set to be released on June 29, the BIS declared … The post BIS Require Tokenized Unified Ledger as Stablecoins Face Toughest Examination Yet appeared initially on UNLOCK Blockchain.
He likened them to private banknotes of the U.S. Free Banking period in the 19th century, noting they can trade at differing worths depending on the issuer– undermining the foundational concept of consistent value in money.The BIS cautioned that the supremacy of U.S. dollar-pegged stablecoins, which now account for 99% of the $260 billion stablecoin market, could lead to capital flight, especially from emerging economies, while undermining nationwide financial sovereignty. This comes days after the U.S. Senate passed an expense to control dollar-based stablecoins– legislation that might accelerate their adoption if approved by the House.Andrea Maechler, Deputy General Supervisor of BIS, raised concerns over the opacity surrounding stablecoin reserves: “The whole concern of disclosure, this is where some of the stablecoins vary. While stablecoins have actually played a function in digital asset adoption, the BIS imagines a future where central bank-led tokenized systems make sure financial control, monetary stability, and technological innovation– without the systemic risks presently posed by private stablecoin issuers.
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