The Bank for International Settlements (BIS) raised concerns about the stability and reliability of 68 stablecoins.
BIS accentuated the most prominent assets, including Tether, USD Coin, and Binance USD.
The BIS research concluded that “a stablecoin that never breaks its peg has yet to emerge.”
The Bank for International Settlements (BIS), an international financial institution, has raised concerns that the 68 stablecoins in the market “do not live up to their names”. In the comprehensive analysis released on November 8, the institution revealed that, to date, not one stablecoin has met the prerequisites to be a secure store of value.The study cited that none of the stablecoins evaluated were able to maintain parity with their pegged closing prices. In comparing backed stablecoins and unbacked stablecoins, the BIS further explained:
The fiat-backed ones [stablecoins] performed best: from January 2019 to September 2023, the median of the price-to-peg ratio for all fiat-backed stablecoins was exactly 1 in 94% of the days, compared with 77% and 50% of the days for crypto-backed and commodity-backed stablecoins, respectively.
The report also dove int…
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