At the end of last week, the Bank for International Settlements (BIS) presented a report in which it analyzed the implications of integrating stablecoins and central bank tokens into the financial system.
According to the organization, the new tools will not be able to solve the problems facing the global economy. If stablecoins are legalized and introduced in emerging markets, new challenges will arise, even though fiat-backed tokens were initially seen as tools designed to facilitate domestic and international payments.
National digital currencies (CBDCs) can also create additional difficulties for the authorities. Households and businesses during times of crisis can switch to investing in tokens, which will lead to an outflow of funds from bank deposits.
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To minimize the risks, BIS analysts suggest that states develop strict legislation with the help of which regulators will be able to constantly monitor the market situation and prevent distortions in favor of CBDC and prevent the withdrawal of funds from bank deposits.
Back in July, the head of the Fed, Jerome Powell, came up with a proposal to develop a regulatory framework for stablecoins. He urged congressmen to empower his department with the authority to control such digital currencies.