bank for international settlements: Stable Coin has not passed the three key tests and is difficult to become the core of the currency, and Circle's stock price has fallen 15%

The bank for international settlements (BIS) report pointed out that Stable Coin has not passed the three tests of singleness, elasticity and completeness, and it is difficult to become the core of the coin. (Synopsis: Animoca Brands, Standard Chartered Bank and HKT join hands to prepare issuance Hong Kong Stable Coin, targeting cross-border payments) (Background supplement: Full interpretation of Hong Kong's Stable Coin Ordinance: from definition, regulatory framework, eligibility to market impact) Swiss Bank for International Settlements (BIS) released a report earlier to clearly identify Stable Coin cannot pass the three key tests of "unity, elasticity, and integrity", and believes that it is not suitable as the core of commodity coin. The report points out that although Stable Coin has certain technical advantages, it may weaken the financial integrity and national coin sovereignty. None of the three major tests of Stable Coin passed The BIS report further shows that Stable Coin is innate in terms of elasticity. Taking Tether (USDT) as an example, each unit of issuance needs to be guaranteed by equivalent assets, resulting in the problem of "cash advance", which is difficult to flexibly adjust supply like Central Bank coin. In terms of "unity", BIS believes that Stable Coin is owned by different centralized institutions, with different standards and limited clearing protection, and it is difficult to be as widely accepted as the coin of bank issuance. The report describes: "Stable Coin holdings mark issuance, just like private banknotes in the 19th century during the Free Bank of the United States, often with different Exchange Rates, undermining the unity of coins." As for "integrity," the report notes that not all Stable Coinissuance practitioners will follow KYC/AML standards, which can lead to financial crime risk. BIS emphasizes the potential of tokenization, Circle stock price fall, but despite reservations about Stable Coin, BIS is still optimistic about the transformational potential of "tokenization" for finance. The report points out that the tokenization of Central Bank reserves, commercial bank funds and government bonds is expected to promote cross-border payments and securities market innovation. Coincidentally, after the report was released, Circle (USDC issuance) shares fell more than 15% under 24, closing at $222.65, I don't know if it is because of the recent normal pullback that is too hot, or if the market is really affected by the BIS view. Related reports Stable Coin "Sino-US route dispute": Hong Kong's B-side breakthrough and the mainstream Yang conspiracy in the United States How does a comparative analysis of the Stable Coin Act in Hong Kong and the United States affect the global Web3 ecosystem? Buy funds with Stable Coin! Hong Kong Victory Securities established "Victory VSG" virtual asset multi-strategy fund "bank for international settlements: Stable Coin failed the 3 key tests, difficult to become a coin core, Circle stock price fell 15%" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Block Chain News Media".