On June 24, 2025, the Bank for International Settlements (BIS) issued a strong warning regarding the risks associated with stablecoins, responding to their growing popularity. The BIS urged countries to accelerate the development of central bank digital currencies (CBDCs) to mitigate these risks.
The BIS highlighted concerns that stablecoins could undermine monetary sovereignty and lack transparency. Dollar-pegged stablecoins currently dominate the market, accounting for 99% with over $260 billion in circulation, according to the BIS (Source: The Bank for International Settlements, Date: May 2025).
The BIS emphasized the need for regulation, citing potential risks to financial stability. They advocate for central banks to develop tokenized "unified ledgers" to provide a more secure alternative.