According to reports by Wu, the Bank for International Settlements (BIS) pointed out in its annual report that fiat-backed stablecoins have failed to pass three key tests required for building the future monetary system: uniqueness, resilience, and integrity. BIS believes that although stablecoins have technological advantages such as programmability, anonymity, and fast cross-border payment speeds, their issuance structure limits expansion capabilities, settlement standards vary, and inconsistencies in anti-money laundering and compliance enforcement may undermine national currency sovereignty and jeopardize the integrity of the financial system.