The Bank for International Settlements (BIS) has issued a warning that stablecoins pose a risk of fragmenting the global financial system. According to CoinTelegraph, the Basel-based institution highlighted that private digital tokens do not meet the standards required for sound money.
The BIS urged policymakers to speed up efforts to develop tokenized versions of central bank and commercial bank money. This move aims to ensure a more stable and integrated financial infrastructure amid the growing use of digital assets.
For Japanese markets, where both digital yen initiatives and regulatory frameworks are evolving, the BIS’s call underscores the importance of advancing secure and regulated digital currencies to support financial stability and innovation.