LONDON, June 24 — The Bank for International Settlements (BIS) — often called the “bank of central banks” — has just delivered one of its strongest warnings yet: stablecoins might be great for crypto fans, but they could seriously mess up global financial systems.
In a newly released chapter of its annual report (due Sunday), the BIS made it clear: stablecoins aren’t as “stable” as the name suggests. Without proper regulation, these digital coins could undermine monetary sovereignty, cause financial instability, and trigger capital flight, especially in emerging markets.
This comes just days after the U.S. Senate approved a bill to regulate U.S.-dollar-backed stablecoins — a move that could send their popularity soaring even further, if the House follows suit.
💰 What’s a Stablecoin Anyway?
Stablecoins are supposed to be the “steady Eddies” of the crypto world — pegged to real-world assets (like U.S. dollars or gold), designed to maintain a constant 1:1 value. Today, dollar-based stablecoins dominate the scene — making up 99% of the $260 billion market.
Sounds safe, right? Not so fast.
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