$BTC

😒 Stablecoins are not money!

The Bank for International Settlements (BIS) criticized stablecoins:

Stablecoins do not pass 3 key tests:

⊹ Unity: each token depends on the issuer and can trade at different rates.

⊹ Elasticity: issuance requires 100% prior backing.

⊹ Integrity: not everyone adheres to KYC/AML standards.

According to BIS specialists, stablecoins:

⊹ Undermine the monetary sovereignty of states.

⊹ Can facilitate financial crimes.

⊹ Are not suitable as a basis for the monetary system.

At the same time, they have advantages:

⊹ Programmability.

⊹ Convenience for new users.

⊹ Fast and cheap transfers (especially cross-border).

P.S. After the report was published, Circle's (issuer of USDC) shares fell by 15%.