BIS: Stablecoins More Like ETFs Than Real Money

Odaily reports that the Bank for International Settlements (BIS) stated that stablecoins operate more like ETFs than real money, as their prices frequently deviate from par and redemptions can be slow or uncertain.

The BIS noted that stablecoin transfers "are settled neither directly nor indirectly on central bank balance sheets," and that, under current conditions, parity-based exchange between different issuers and blockchains cannot be guaranteed in all circumstances. The report also warned that dollar-pegged stablecoins are accelerating the dollarization of fragile economies, weakening local currencies, and circumventing traditional capital controls. (CoinDesk)