BIS Head Warns: Stablecoins Threaten Financial Stability
The head of the Bank for International Settlements (BIS), Pablo Hernández de Cos, has issued a stark warning: popular stablecoins such as USDT and USDC could trigger a new financial crisis. In his view, these tokens are not real money but rather resemble exchange-traded funds, albeit with much greater risks.
Why Are Stablecoins Dangerous?
De Cos explained that stablecoins are pegged to the US dollar, but they cannot simply be exchanged for real money. To get dollars directly from the issuer, you have to pay a fee and meet certain conditions. On exchanges, stablecoins can lose their dollar peg—as has already happened with USDT and USDC.
The main problem is a mass outflow of funds. If stablecoin holders simultaneously decide to exchange them for dollars, issuers would have to sell off their reserves urgently: short-term bonds and bank deposits. This would put pressure on financial markets and could trigger a crisis similar to the one that caused the collapse of Silicon Valley Bank.
Stablecoins and Crime
Another serious risk is the use of stablecoins for illegal operations. De Cos noted that open blockchains and non-custodial wallets allow circumventing rules against money laundering and terrorist financing. Without special security measures when exchanging crypto assets for fiat, stablecoins remain an attractive tool for criminals.
Key Points
- Stablecoins are not money but investment products with the risk of losing their dollar peg
- A mass withdrawal of funds from stablecoins could cause a financial crisis
- Stablecoin issuers may be forced to sell off reserves, hitting banks
- Stablecoins are used to bypass anti-money laundering laws
- The BIS calls for strict regulation
Market Reaction
So far, de Cos's statement has not caused sharp movements in the stablecoin market. However, experts note that such signals from international regulators could lead to tighter rules. This is especially important amid discussions of stablecoin laws in the US and Europe.
What Does This Mean for Ordinary People?
If you use USDT or USDC for transfers or savings, remember: these tokens are not protected by the state like bank deposits. In a crisis, you could lose part of your funds. Regulators warn: stablecoins are not a safe alternative to the dollar but a high-risk instrument.
— Editorial Team
