BUR says that stablcoins do not function as money and alert about possible risks

According to him BIS, Despite the benefits that provide as payment systems, these assets do not comply with three principles that they consider fundamental for money. They also alert about the systemic impact they could mean for interested economies.

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• The report criticizes the lack of “Unity, elasticity and integrity” of the stablecoins in front of money.
  
• It is warned about risks such as “Steering dollarization” and money laundering.
  
• The organization does support tokenization as a transformative innovation.

In an annual report published today, the International Payment Bank (BIS) He declared that the Stablecoins do not qualify as money.

In the report in question, reviewed by various media, the international entity argued that these digital assets do not exceed the three essential pillars to sustain a functional monetary system: Unity, elasticity and integrity.

“Stablecoins do not compare favorably with the desirable characteristics of solid monetary arrangements and, therefore, cannot be the pillar of the future monetary system”the report authors wrote.

Although some technical advantages of these assets are recognized, such as programability, they warn that the proliferation of these assets could undermine the monetary sovereignty of the states and introduce financial risks on a global scale.

The three evidence that the stablcoins do not exceed

He BIS It details that the stablcoins fail the elasticity test due to their structure. For example, the USDT of Tether requires act assets equivalent to 100 %, which imposes type restrictions “prepayment” To issue new units. This limits the capacity to expand the money supply in response to demand.

As for the monetary unit, the report argues that the Stablcoins are not universally accepted as the currencies issued by a central bank. “Stablecoins holdings are labeled with the name of the sender, such as the private tickets of the nineteenth century in the US, and can quote different exchange rates”warn the authors.

Finally, in terms of integrity, the BIS Underline that Issuers do not always follow robust standards of KYC/AML nor guarantee effective mechanisms to prevent financial crimes.

The report also warns that, although stablcoins can facilitate cheaper and faster cross -border payments, their use as money presents dangers. The possibility of a “is mentionedSteering dollarization”That the monetary control of developing countries erosion, as well as its attraction for illicit operations.

Despite this, the BIS It recognizes its usefulness as a bridge to the crypto ecosystem and as a financial tool in countries with high inflation or capital controls. However, he clarifies that this does not turn them into money or should be treated as such.

The commitment to tokenization

Despite their critical position against the stablecoins, the BIS He was optimistic about the tokenization potential. Consider that this technology can revolutionize international payments, stock markets and other aspects of the financial system if it is based on money from the central banks, instruments of the traditional banking sector and government bonds.

“Tokenized platforms with reserves of central banks and public assets in their nucleus can lay the bases of the future financial system”concludes the report.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

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