Bank for International Settlements Calls for Global Cooperation on Stablecoins to Prevent Market Fragmentation
The Bank for International Settlements (BIS) has emphasized the need for international cooperation in regulating stablecoins to prevent market fragmentation. BIS General Manager Pablo Hernandez de Cos highlighted the potential risks stablecoins pose to monetary and fiscal policy, financial market stability, and efforts against illicit financing. He warned that without global coordination, divergent regulatory frameworks could lead to market fragmentation and regulatory arbitrage. De Cos also noted that stablecoins, such as those issued by Tether and Circle, resemble securities more than money due to redemption frictions. He suggested that risks could be mitigated if stablecoin issuers had access to deposit insurance or central bank lending facilities. 
