The Asia-Pacific head of the BIS says stablecoins have no role as money.
June 27, 2022
The Asia-Pacific head of the Bank of International Settlements, Siddharth Tiwari, criticized stablecoins.
BIS executive said stablecoins are not only bad investments but are also ill-suited as a form of money.
In an interview with the South China Morning Post, Tiwari said that the stablecoin name does not suggest that these are "stable" investments.
Referring to Terra LUNA collapse, Tiwari said recent events show that stablecoin fails to achieve the full network effect we would normally expect of money.
However, the BIS executive praised the technology behind stablecoins.
“But the innovation that they bring is important for us, and could be useful for the design of central bank digital currencies," Tiwari noted.
Earlier in May, Terra’s algorithmic stablecoin lost its peg from dollar and caused a widespread crash.