In the latest TechFlow news, on June 25th, 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" to become the pillar of currency: singularity, elasticity, and integrity.
The report pointed out that Stable Coin, although it has advantages such as programmability, anonymity, and easy access for new users, its structure makes it unable to pass stress tests, because assets like Tether's USDT require "full prepayment" to increase. At the same time, since Stable Coins are usually issued by centralized entities and have inconsistent standards, they cannot achieve the "singleness" of currency coins.
BIS also warns that Stable Coins may undermine government coin sovereignty through 'implicit dollarization' and may facilitate criminal activities. Nonetheless, BIS is in favor of central bank reserves, commercial bank coin, and the tokenization of other traditional assets.