Bank for International Settlements explores whether stablecoins could help cross-border payments

The Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements has released a paper on stablecoins. The paper said stablecoins could potentially lower costs, speed up payments, encourage competition and increase transparency. However, the article stated that stablecoins also have disadvantages, stating three times in the report that the disadvantages may outweigh the potential benefits. “To address these challenges, regulation and oversight of SAs (stablecoin arrangements) alone may not be sufficient to mitigate such risks,” the paper states.