Bank for International Settlements: Stablecoin failed the "three key tests" and cannot become the pillar of the coin

On June 25, according to The Block, the Bank for International Settlements (BIS) stated in its annual report released on Tuesday that Stablecoins failed to pass the "three key tests" of becoming the cornerstone of the currency: singularity, elasticity, and integrity.

The report points out that Stablecoins, despite their programmability, anonymity, and ease of access for new users, cannot pass stress tests due to their construction, as assets like Tether's USDT require 'full prepayment' to increase. At the same time, since Stablecoins are usually issued by centralized entities and have inconsistent standards, they cannot achieve the 'singleness' of currency coins.

BIS also warned that Stablecoins could undermine government coin sovereignty through 'implicit dollarization' and could facilitate criminal activities. Nevertheless, the BIS remains optimistic about the tokenization of central bank reserves, commercial bank coins, and other traditional assets, seeing it as a 'revolutionary innovation'.