BIS says stablecoins are more like ETFs than real money

Odaily Planet Daily News The Bank for International Settlements (BIS) stated that stablecoins operate more like ETFs than real currency because their prices often deviate from par value, and redemptions can be slow or uncertain.

BIS stated that stablecoin transfers "are settled neither directly nor indirectly on the central bank's balance sheet," and that at present, it cannot guarantee redemption at par value across different issuers and blockchains under all conditions. The report also warned that stablecoins pegged to the US dollar are accelerating the dollarization of fragile economies, weakening local currencies, and circumventing traditional capital controls. (CoinDesk)