Pablo Hernandez de Cos, General Manager of the Bank for International Settlements (BIS), has emphasized the need for global coordination in regulating stablecoins. He warned that differing regulations across countries could lead to significant market fragmentation and regulatory arbitrage. De Cos highlighted that stablecoins could undermine monetary and fiscal policies, exert pressure on financial markets, and affect anti-money laundering systems. He also noted that current redemption mechanisms for stablecoins resemble securities or ETFs more than currencies, cautioning that a run on stablecoins could disrupt markets.
BIS Chief Calls for Global Coordination on Stablecoin Regulation
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