BIS: Stablecoins fail key tests for monetary backbone

The Bank for International Settlements (BIS) stated in a new report that stablecoins fail three essential tests—singleness, elasticity and integrity—disqualifying them from serving as core components of the future monetary system. While acknowledging benefits like programmability and cross-border efficiency, BIS warned that stablecoins could undermine monetary sovereignty and financial integrity. Despite its critique, BIS highlighted the “transformative” potential of tokenizing central bank reserves and traditional financial assets to modernize global finance, The Block reported.