Bank for International Settlements: Stablecoins have not passed key tests and are not considered real currency

The Bank for International Settlements recently released a report stating that stablecoins do not meet the standards of true money. This institution, known as the "central bank of central banks," indicated that digital assets tied to fiat currencies have failed to pass the three key tests required to become a pillar of the monetary system: uniqueness, resilience, and integrity.

The report points out that while stablecoins have advantages in certain aspects, such as programmability, anonymity, and user-friendly access, they may pose risks to the global financial system. These risks include undermining government monetary sovereignty and facilitating illegal activities.

Specifically, stablecoins perform poorly in stress tests. For example, a well-known stablecoin requires holders to make full upfront payments, which imposes a "prepayment constraint." Unlike central bank reserves, stablecoins are typically issued by centralized entities that may set different standards and fail to meet the "uniqueness" requirement of currency.

In addition, stablecoins have significant flaws in promoting the integrity of the monetary system. Not all issuers adhere to standardized KYC and AML guidelines, making it difficult to effectively prevent financial crimes.

Despite concerns about stablecoins, the bank for international settlements remains optimistic about the potential of tokenization. The report suggests that a tokenization platform centered around central bank reserves, commercial bank currency, and government bonds may lay the foundation for the next generation of currency and financial systems. This innovation could bring revolutionary changes in areas such as cross-border payments and the securities market.

It is worth noting that after the report was released, the stock price of a well-known stablecoin issuer experienced a significant drop, falling by more than 15%. This reaction reflects the market's concerns about the future development prospects of stablecoins.

Overall, although stablecoins play an important role in the cryptocurrency ecosystem and are becoming increasingly popular in certain specific contexts, the report from the bank for international settlements indicates that they have not yet reached the standards to be considered as true currency. The exact positioning and role of stablecoins in the monetary system in the future still requires further observation and discussion.