Stablecoins were called out sharply by the BIS this time.
People usually treat USDT and USDC as “on-chain dollars,” but the BIS’s judgment is straightforward: stablecoins are more like ETF shares than real money. The reasons are also practical—redemptions involve frictions, issuers across different venues and across chains aren’t guaranteed to stay 1:1 forever, and this may amplify dollarization and foreign-exchange risks.$BTC
The controversy lies here: are stablecoins cash in the crypto world, or financial products wearing a dollar costume? If regulators treat them as the latter, the game could change completely.#USDT
People usually treat USDT and USDC as “on-chain dollars,” but the BIS’s judgment is straightforward: stablecoins are more like ETF shares than real money. The reasons are also practical—redemptions involve frictions, issuers across different venues and across chains aren’t guaranteed to stay 1:1 forever, and this may amplify dollarization and foreign-exchange risks.$BTC
The controversy lies here: are stablecoins cash in the crypto world, or financial products wearing a dollar costume? If regulators treat them as the latter, the game could change completely.#USDT