The cost of stabilcoins is supported by a bonding asset like a US dollar or other fiat currency, as well as short -term treasury bonds. However, bankers are afraid that stablecoins often deviate from price bindings and can be traded below $ 1 even with calm market conditions, BIC specialists write. They know cases when stabiblcoins were losing a binding to the dollar, like Terrausd collapsing in 2022. The authors of the BIS report doubted the reliability of stablecoins as a means of exchange.
BIS admitted that over time, the relationship between stablecoins and the traditional financial system was strengthened. Tether, which produces USDT, has become one of the largest holders of the US Treasury bonds. The volume of Tether’s investments in the American government bonds exceeded $ 127 billion, which is comparable to large investors and funds.
This strong relationship can affect interest rates, especially during periods of market tension. According to BIS estimates, the influx of funds in stablecoins in the amount of $ 3.5 billion can reduce the profitability of US Treasury papers by 2.5–5 basic points. A quick liquidation of reserves can lead to urgent sales and failures in the repo markets, where assets are sold with the obligation of the reverse redemption after a certain time. Some issuers of stablecoins also work in this market to make a profit, Bis noted.
The use of dollar stabiblcoins is growing, especially in countries with high inflation and devaluation of state currencies. However, the growing interest of the inhabitants of such countries in stablecoin can jeopardize the monetary sovereignty of these jurisdictions, since it will be more difficult for financial regulators to control capital flows, experts of the Bank of International Settlements believe.
Bis complain that, unlike traditional financial systems, it is more difficult to control the blockchain -based tools to comply with the rules for combating money laundering (AML) and the financing of terrorism. Even if government agencies can request a blocking of suspicious funds, large -scale blocking of pseudonymous addresses will be impossible. Now stablecoins are operating outside the deposit insurance system, so BIS has called on international regulators to create special rules for supervision of stablecoins, which will indicate which organizations can produce them and under what conditions.
Last year, the Bank of International Settlements called on the countries to create universal laws that will apply to stablecoin. It is different requirements that interfere with the widespread use of tokens at the international level, Bis explained.
Source: Bits
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