Stablecoins “bad performance” as central banks warn

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Central bankers have evaluated a tremendous evaluation of Stablecoins, saying they are “poorly performing” the main requirements for wide use as funds, venting US President Donald Trump to make them a dominant financing column.

The bank for international settlements said that Stablecoins fails in the three main tests of any money because it is not supported by central banks, and lacks caffeine handrails against illegal use and they have no flexibility in the funding needed to generate loans.

Stablecoins It is designed to serve as a bridge between volatile encryption assets such as bitcoin and traditional cash systems by tracking the value of the Fiat currencies with one support for one in the safest assets such as government bonds and money boxes.

Their elements boast that by transferring money online, they are more efficient than international banking transportation. However, the fact that they can be considered unknown make them enjoyable with encryption traders and a crime channel including drug smuggling and money laundering.

“Stablecoins bears the risk of rapid withdrawals by investors. He said: “He is really asking, if there is such remedies in Stablecoin space, what are the consequences.”

Governments in the United States and the United Kingdom offer the organizational frameworks of Stablecoins in response to their increasing use. There are about $ 250 billion for trading already, dominated by the distinctive dollar -based symbols such as Tether and Circle’s Usdc.

Since Trump won the presidential elections last year, a pledge to “make the United States to the world of encryption in the world”, his administration has canceled many Biden era restrictions on the use of encryption. The president is also a supporter of The world is financial freedomCrypting currency collection with Stablecoin USD1.

“While the future Stablecoins is still uncertain, its weak performance in the three tests indicates that they may at best serve a sub -role,” BIS, the world’s main central bank forum, said in a chapter of its annual economic report on Tuesday.

The report said that Stablecoins “was the choice for illegal use to exceed the guarantees of integrity,” noting that they lack the controls of your “knowledge” for traditional financing.

She found that they were “poorly performed” in the settlement function of money because of its lack of support by central banks, which works as lenders of the last shelter in a crisis.

She said, “Stablecoins is often traded at different exchange rates, which undermines individual.” “They are also unable to fulfill the principle of” non -questions “from the money issued by the bank.”

Due to their needs until they are always supported with an equivalent amount of assets, they also do not have the “flexibility” that allows banks to create additional funds by granting loans.

He added: “Any additional release requires fully advanced by holders, which undermines flexibility by imposing” cash “restrictions, she added.

Warning that “the loss of monetary sovereignty and the capital journey is one of the main concerns, especially for emerging economies and developing economies,” BIS said: Stablecoins from the bank “may determine new risks, depending on legal arrangements and governance.”

The body believes that it is better to create a central database of distinctive deposits for central banks and commercial banks to accelerate and reduce the cost of payments across the border.

This system is tried with seven major central banks and 43 commercial institutions, called Project Agorá.

“Society has an option,” said BIS. “The monetary system can turn into a system of the next generation based on the foundations of tried confidence, testing, and technologically superior infrastructure.”

“Or a community can re -learn historical lessons about improper funds restrictions, with real societal costs, by taking measures on private digital currencies that fail in the triple test of individual unit, flexibility and integrity.”