BIS warns stablecoins risk fragmenting global finance

The Bank for International Settlements (BIS) issued a warning that stablecoins may fragment the global financial system. The statement highlights potential risks to financial stability and regulatory coherence as these digital assets grow in use.

The BIS, often called the central bank for central banks, did not provide specific policy recommendations in the alert. The full report is available via Cointelegraph, which originally covered the development.

The warning comes amid ongoing global debate over how to regulate stablecoins, which are designed to maintain a fixed value relative to fiat currencies like the US dollar.