<ul data-eligibleForWebStory="false"><li>The Bank for International Settlements (BIS) highlighted risks posed by stablecoins to financial integrity and stability due to their growing ties with the traditional financial system.</li><li>The BIS emphasized that the use of foreign currency-denominated stablecoins could threaten monetary sovereignty and the effectiveness of current foreign exchange regulations, necessitating tailored regulatory approaches.</li><li>The BIS bulletin noted that stablecoins' market capitalization has doubled in less than two years to $255 billion, with the majority denominated in U.S. dollars, and highlighted the risks stablecoins pose to monetary sovereignty and cross-border transactions.</li><li>The BIS recommended a regulatory framework for stablecoins that includes international cooperation, leveraging blockchain information to combat illegal activities, and potentially requiring a more restrictive regime compared to traditional finance due to the lack of established safeguards within the stablecoin ecosystem.</li></ul>

BIS Says Stablecoins Require ‘More Restrictive Regime’ Than Traditional Finance

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