stable coins

Story: BIS Flags Stablecoins as a Threat to 4 Trillion Dollars in Global Finance Stability

By Dan Saada

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BIS Pushes Tokenized Central Bank Money. The BIS's proposed fix is specific: policymakers should accelerate the development of tokenized…

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The Fragmentation Risk Is Real. Here's the core fear: if stablecoins scale without oversight, they start to operate as parallel…

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The Bank for International Settlements isn't mincing words. The Basel-based institution says stablecoins could fragment the global financial system — and it wants policymakers to…

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The BIS's position is pretty clear: stablecoins, as they exist right now, don't meet the basic standards of sound money.

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The BIS's proposed fix is specific: policymakers should accelerate the development of tokenized forms of both central bank money and commercial bank money.

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The institution sees tokenized central bank money as a way to integrate digital currencies into the financial system without blowing up the structures that already exist.

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No timeline. No detailed plan disclosed. Just urgency.

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Here's the core fear: if stablecoins scale without oversight, they start to operate as parallel monetary systems. And parallel systems, by definition, fragment things.

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Read also: Emerging Markets Burn Through Stablecoins While U.S. and Europe Hold the Keys

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The institution has been consistent on this. It keeps coming back to the inadequacy of stablecoins as a monetary foundation, and it keeps pushing the same solution: get central…

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And the concern isn't just theoretical. Stablecoins have already found deep roots in crypto trading, cross-border payments, and parts of the developing world where access to…

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Policymakers are probably aware. Whether they act is unclear.

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The BIS's call for regulatory frameworks isn't new — the institution has raised similar alarms before. But the tone seems sharper now, more insistent.

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Some regions have moved faster than others on digital currency regulation. Others are still figuring out basic definitions.

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Read also: 21Shares Midyear Check: Ethereum Scaling Beats Forecasts While ETPs and Stablecoins Slip

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