Bank of Banks (BIS) tightens regulation of stablecoins

Always more responsibilities. Bankers of a multinational body from BISBank for international payments – are always very eager and enthusiastic impose of propose regulations for the Bitcoin (BTC) sector. and cryptocurrencies. THE stablecoinswhich directly competition to fiat currencies and an aging (senile?) banking system in the viewfinder “banks of banks”.

Stablecoins are still “risky” according to the BIS.

This year, April 9, 2024 Bank for international payments once again published a report on cryptocurrencies of the type stablecoin. In this document entitled “ Stablecoins: regulatory response on their promise of stability », the BIS bankers still want (kindly and selflessly, one imagines) to teach the work of elected representatives in advance nations of the world by proposing additional obligations for these crypto-assets.

Bankers acknowledge that “stable coins are gaining ground in the traditional financial sector ” and so they want to fast-track it to match the limitations and slowness of the traditional system. BIS therefore brings the word ” risk(s) » scare and impose a regulatory framework in every way:

“If stablecoins can do it. they bring a number of benefits, they also pose significant risks. Their proponents argue that they can increase financial inclusion, reduce costs and improve the efficiency of cross-border payments. (…) However, many advantages remain theoretical. There have been cases where stablecoins have lost their anchor and in some cases collapsed, undermining the stability they promised. (…). »

Excerpt from the latest BIS report on stablecoins

The Bank for International Payments wants to tightly regulate cryptocurrencies

L’increasing adoption Stablecoins seem to have multinational bankers sweating it out. AND regulations scattered and very different across the planet do not reassure these large international financiers (although these rules were nevertheless elected representatives make sovereign decisions each country).

BIS would therefore dream of rules and obligations globalizedunited to ensure that this global stablecoin regulatory cage doesn’t let anything slip:

“As the adoption of stablecoins grows, preventing regulatory fragmentation will… become increasingly important. Authorities face the challenge of creating a regulatory framework that supports innovation while reducing risk. Therefore, as stablecoin markets develop, international cooperation will be essential in creating an efficient and consistent regulatory environment for stablecoins. (…) »

Excerpt from the latest BIS report on stablecoins

I’m not sure about that a hyper-crypto-friendly nation like El Salvadoris ready to unify its regulations with jurisdictions openly hostile to the sector. But the BIS bankers will probably never stop trying put on a tight leash with digital assets. At least as long as the old banking system persists.

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