“Stablecoins are a subcategory of crypto assets that aim to maintain a stable value relative to a specified peg. We studied 68 stablecoins and none of them were able to maintain parity with their peg constantly,” the experts said.
Moreover, BIS experts claim that there is currently no guarantee that stablecoin issuers will be able to buy back user coins in full.
“For these reasons, we conclude that stablecoins in circulation today do not meet the key criteria of being a safe store of value and a reliable means of payment in the real economy,” the experts concluded.
Analysts also write that without additional data on the use of stablecoins, it is difficult to determine the risks of stablecoins for the smooth functioning of payment systems and financial stability in a broader sense.
Earlier, BlackRock, one of the favorites in the Bitcoin ETF race, said that stablecoins such as USDT and USDC pose a threat to the world’s first cryptocurrency.
The day before, the world’s largest cryptocurrency exchange, Binance, announced the release of a stablecoin, which will be backed by the Kazakh digital tenge. The rate should be pegged to the tenge in a 1:1 ratio.
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.