The Bank for International Settlements believes that stablecoins have not passed "three key tests"

According to The Block, a report from the Bank for International Settlements states that digital assets linked to fiat currencies have not passed the three key tests of singularity, elasticity, and integrity, and cannot become pillars of the monetary system. The author of the bank stated that although stablecoins have advantages such as programmability and pseudo anonymity, and their technical attributes may make cross-border payment costs low and fast, their role in the cryptocurrency ecosystem's entry and exit channels and high inflation countries is gradually becoming apparent. However, compared with issuance tools such as central banks and commercial banks, they may harm government monetary sovereignty and promote crime, and should not be regarded as cash. Specifically, stablecoins are difficult to construct and pass elasticity tests, and additional issuances require full payment in advance; Issued by centralized entities with varying standards and different settlement guarantees, disrupting singularity; Not all issuers follow standardized KYC/AML guidelines, and there are deficiencies in terms of completeness.