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BIS warns against stablecoins
June 25, 2025
The Bank for International Settlements, a central bank based in Switzerland, has warned against stablecoins. The bank pointed to potential risk to monetary sovereignty and lack of a settlement feature, according to a report by Yahoo! Finance.
"Stablecoins as a form of sound money fall short, and without regulation pose a risk to financial stability and monetary sovereignty," BIS said in a statement.
Hyun Song Shin, economic advisor for the BIS, said stablecoins often trade at different exchange rates. This could cause issues if the stablecoins collapse.
"The whole question of disclosure, this is where some of the stablecoins differ," Andrea Maechler, deputy general manager, BIS, told the news outlet. "You will always have the question about the quality of the asset backing. Is the money really there? Where is it?"
The BIS argues that central banks should work together to create a unified ledger rather than disparate stablecoins.
Currently, stablecoins are seeing interest on both the federal and private level, with the Senate approving a regulatory framework for stablecoins and Fiserv crafting a FIUSD stablecoin for its network of more than 10,000 financial institutions.
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