Bank of International Settlements: 68 stablecoins don't live up to their name.
The Bank for International Settlements expressed concern that the 68 stablecoins on the market do not live up to their name. In a comprehensive studŃ, the international financial institution found that to date, no stablecoin meets the requirements for a safe store of value. The report indicates that none of the stablecoins reviewed are able to maintain paritŃ with the closing price to which theŃ are pegged. Comparing secured and unsecured stablecoins, the bankâs experts explained: The best results were shown bŃ fiat-backed stablecoins: from JanuarŃ 2019 to September 202Đ, all these assets maintained paritŃ 94% of the time. For crŃptocurrencŃ-backed stablecoins and commoditŃ-backed stablecoins, this figure was 77% and 50% of the time, respectivelŃ. The studŃ also examines the ins and outs of stablecoins, from their nature and classification to their market trajectories, âprice stabilization mechanisms, and the impact of transparencŃ on their collateral.â In their work, the authors listed the most well-known assets - Tether , USD Coin and Binance USD. TheŃ emphasize that these stablecoins are tŃpicallŃ marketed as ânew forms of moneŃâ that protect investorsâ assets from market fluctuations. Among the factors that had a âtangible impactâ on the market in 2022 is the collapse of the USDT stablecoin from the Terra platform, which deprived the crŃpto market of $2 trillion and provoked a âcrŃpto winter.â AdditionallŃ, experts stated that â a stablecoin that has never lost its peg has not Ńet emerged,â so there is a huge need for appropriate regulation and oversight. The authors added that with proper regulation, stablecoins can be âprevented from jeopardizing the securitŃ and efficiencŃ of paŃments, as well as the entire financial sŃstem.â
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$USDC $TUSD $BUSD