Overview
- The BIS general manager, speaking in Tokyo on Monday, urged countries to align stablecoin rules to prevent firms shopping for lenient regimes and to avoid a split market.
- He said big dollar tokens like Tether’s USDT and Circle’s USDC, which dominate a roughly $315–$320 billion market, act more like ETFs than cash because fees and redemption hurdles let prices drift from $1.
- The BIS warned that a run could force issuers to dump Treasury bills and withdraw bank deposits, pushing stress into funding markets unless safeguards exist.
- Policymakers are weighing caps on interest, tighter reserve and disclosure rules, and access to deposit‑insurance‑style or central‑bank backstops as work on global standards slows.
- Officials also flagged AML gaps on public blockchains and rising use in emerging markets, where dollar‑pegged coins can drain local bank deposits and weaken monetary control.