In a paper that was issued with intriguing findings, the Bank for International Settlements (BIS) analyzed 68 stablecoins.
A study by the Bank for International Settlements (BIS) looked at 68 different stablecoins and found that none of them could maintain full use and stability all the time.
According to the research, current stablecoins aren’t good enough to serve as both a store of value and a payment method.
If stablecoins are to continue serving as a means of exchange, the paper notes that they must overcome the difficulties associated with maintaining their peg to fiat currencies.
According to the research, stablecoins are susceptible to regulatory issues and market swings as they are not supported by any central body or government.
The BIS paper expresses worries over the security of the cryptocurrency sector and the dangers that stablecoins might bring to the economy.
To make sure stablecoins are secure and dependable for consumers, it need a concerted worldwide strategy to regulate them.
The study finds that stablecoins require more investigation and new ideas to overcome the obstacles they confront as they are still in their early phases of development.
In addition, he thinks that central banks should think about creating their own digital money as a solid substitute for stablecoins.
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