The Bank for International Settlements (BIS) has reiterated the need for global regulation of stablecoins. The organization believes these assets resemble investment instruments more than payment methods, according to Reuters.
BIS General Manager Pablo Hernández de Cos highlighted the market's high concentration, noting that USDT and USDC account for about 85% of the total issuance, which has exceeded $300 billion. Due to redemption issues and frequent deviations from the peg, de Cos likened stablecoins to exchange-traded funds.
The BIS head warned that fiat-pegged assets could weaken monetary policy and trigger stress in financial markets. Differences in regulations across countries create risks of regulatory arbitrage.
De Cos also reminded about the dangers of mass withdrawals. He stated that risks would decrease if issuers gained access to deposit insurance schemes or central bank credit lines. He supported a ban on interest payments for stablecoins to prevent capital flight from bank deposits.
At the same time, the use of stablecoins in the real economy is increasing. According to a joint study by BVNK, Coinbase, and Artemis, these assets are increasingly being used for payments, salaries, and savings.
In April, analysts from Chainalysis predicted that the volume of transactions in stablecoins could reach $1.5 quadrillion by 2035.