A report released by the Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements on Tuesday (31st) stated that existing stablecoins do not fully comply with relevant regulatory requirements, and even if there are fully compliant stablecoins, they may not necessarily It is of great help to cross-border payments.
CPMI, which sets industry standards for the Bank for International Settlements, said stablecoins could "bring about opportunities" for cross-border transfers by speeding up transactions and reducing costs, as proponents claim, but the potential drawbacks could outweigh the benefits.
The report reads:
"Challenges may include coordination, competition, network size and market structure, as well as the lack of internationally consistent and effective management and supervision."
The CPMI report follows an announcement last October that it would investigate whether stablecoins could help improve cross-border payments. However, the results of the investigation were not satisfactory. A statement from CPMI read:
“The report confirms that no stablecoin regime currently exists that is considered to be reasonably designed, standardized and fully compliant with all relevant regulatory requirements. Furthermore, even if such stablecoin regimes do exist and help resolve specific cross-border payment frictions, they There will not necessarily be a positive impact on cross-border payments, as the disadvantages may outweigh any potential benefits.”
Fabio Panetta, a former member of the Executive Committee of the European Central Bank who will take over as chairman of the CPMI on Wednesday (1st), said in a Financial Times editorial published on Tuesday that the world needs a better cross-border payment network, unsecured Cryptocurrencies and even stablecoins “cannot guarantee convertibility at face value at any time and are therefore prone to runs.”
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This article Global payments regulator CPMI: None of the existing stablecoins fully comply with relevant regulatory requirements, and the shortcomings may outweigh the potential benefits first appeared on Zombit.