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BIS Unsure If 'Global Stablecoins' Can Help Cross-border Payments

15:24 Monday , July 13th 2020
The Bank for International Settlements (BIS) agrees that leading financial nations badly need to make cross-border payment progress – but is still unsure if that the answer will be found in global stablecoin projects.
The BIS wrote that "sound legal underpinning" could provide the "basis for the use of stablecoins in multiple jurisdictions."
The BIS appears to be hedging its bets with stablecoins, opining that "much will depend on the design features of global stablecoins, which at the time of writing of this report are not yet clear."
The authors added, "[Global stabelecoin] setup and operational costs are expected to be high but not quantifiable at this point in time. As global stablecoin arrangements are largely based on new technologies yet to be tested on a large scale, they may face significant operational risks that need to be appropriately managed and mitigated."
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