BIS Stablecoin Principles
Bank for International Settlements’ guidelines stressing regulation for stablecoins to mitigate financial stability risks and ensure they function as sound money.
What is BIS Stablecoin Principles?
In its 2025 Annual Economic Report, the BIS outlined principles assessing stablecoins against criteria like singularity, settlement finality, and safety, concluding they fall short as sound money without robust regulation due to volatility and redemption risks. BIS emphasized that stablecoins on permissionless blockchains pose threats to monetary sovereignty, recommending oversight to address illicit finance and market fragmentation, with evidence from 2025 studies showing asymmetric effects on stablecoin prices from market events. The principles advocate for tokenized central bank reserves as a safer alternative, influencing global policies like the U.S. GENIUS Act.
Related Terms
ENS
A decentralized naming system on Ethereum that maps human-readable names to blockchain addresses and other resources.
Ethereum Wallet
A software or hardware tool that manages Ethereum accounts, enabling users to store, send, and receive ETH or tokens.
Fiat
Government-issued currency not backed by a physical commodity, used as legal tender in digital asset trading.
Solana Token Program
A core Solana onchain program with the program ID `TokenkegQfeZyiNwAJbNbGKPFXCWuBvf9Ss623VQ5DA`, enabling the creation, transfer, minting, and freezing of fungible and non-fungible digital assets.
Market Order
An order to buy or sell an asset immediately at the best available current price.
Oracle
A mechanism that provides real-world data to blockchains for use in smart contracts.