BIS News

BIS says stablecoins fall short on key monetary principles, warning of financial crime risks and threats to monetary sovereignty.

The New York Fed and the Bank for International Settlements are trialing smart contracts for tokenized monetary policy, aiming to let central banks act instantly in future financial systems.

Speculative activity remains closely tied to global funding rates, highlighting crypto’s growing “interconnectedness” with traditional finance, a BIS report claimed.

The Bank for International Settlements warns that crypto and stablecoins may destabilize finance and widen inequality, urging stronger regulation in response.

According to a BIS report, Jamaica, Nigeria, China, Sweden, the Bahamas and Peru have CBDC programs in various stages of development.

The UK’s central bank wants to monitor the stability of crypto and set future policy; it has asked local firms to disclose their current and future crypto plans.

BIS researchers concluded that liquidity provision is not decentralized apart from its technical implementation. 

Economic sanctions have a profound effect on international financial architecture, it turns out.

Project Mandala uses zero-knowledge proofs to complete compliance checks across different jurisdictions. 

The Bank for International Settlements and the Financial Stability Board have similar views on tokenization — it could provide new benefits and familiar challenges.

The large private companies will work with seven central banks on improving structural inefficiencies in international transfers.

The proof-of-concept showed that real-time monitoring of stablecoin reserves could be achieved with cooperation among regulators, technologists and issuers.

The committee is unveiling the standards later in July, culminating a yearslong process.

Bank of Canada Governor Tiff Macklem said that as finance evolves, the industry must innovate and apply new skills, allowing Canadians to benefit from advancements.

Central banks are increasingly adopting generative AI for cybersecurity, with a BIS report indicating that 71% are already using it and more planning to follow.