BIS Warns Stablecoins Can Depeg Even with Full Reserves: Here’s Why

TLDR: A fully collateralized stablecoin can still depeg if its reserves cannot be accessed during a run. The BIS compares stablecoins to Eurodollars, noting they lack central bank settlement and repo facilities. Stablecoins mirror 19th-century wildcat banks, operating across fragmented jurisdictions with no shared backstop. Emerging stablecoin regulations follow the same path that brought lasting [...]

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