Global watchdog: Stablecoin cons outweigh pros for cross-border transactions
The Committee on Payment and Market Infrastructures has highlighted both the potential and the substantial challenges of adopting stablecoins in global cross-border payments, underscoring their current non-compliance with international regulations. Stablecoins, digital currencies pegged to other assets like fiat currencies, have been touted for their potential to enhance transaction speeds and reduce costs for cross-border payments. However, a recent report by the Committee on Payment and Market Infrastructures (CPMI) explores the capacity of stablecoins in fulfilling these expectations while being fully compliant with regulatory standards. The CPMI, a global standard-setting body under the Bank for International Settlements, sheds light on the various challenges and intricacies involved in integrating stablecoins into the global financial framework. Despite the potential benefits, the report underscores that potential drawbacks could significantly outweigh the advantages, highl...