Svmuu News: The Bank for International Settlements (BIS) stated that stablecoins operate more like ETFs than actual currency, as their prices often deviate from parity and redemptions may be slow or uncertain.
The BIS noted that stablecoin transfers “are settled neither directly nor indirectly on central bank balance sheets,” and that it is currently impossible to ensure parity exchanges between different issuers and blockchains under all conditions. The report also warned that U.S. dollar-pegged stablecoins are accelerating the dollarization of vulnerable economies, weakening local currencies, and circumventing traditional capital controls. (CoinDesk)