{"id":82641,"date":"2023-11-09T14:29:46","date_gmt":"2023-11-09T19:29:46","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/stablecoins-not-secure-as-store-of-value\/"},"modified":"2023-11-09T14:29:49","modified_gmt":"2023-11-09T19:29:49","slug":"stablecoins-not-secure-as-store-of-value","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=82641","title":{"rendered":"Stablecoins Not Secure as Store of Value"},"content":{"rendered":"<div>\n<figure id=\"attachment_129406\" aria-describedby=\"caption-attachment-129406\" style=\"width: 1280px\" class=\"wp-caption alignnone\"><noscript><\/noscript><figcaption id=\"caption-attachment-129406\" class=\"wp-caption-text\">Stablecoins. Source: Adobe \/ Grispb<\/figcaption><\/figure>\n<p>Fiat-backed stablecoins are \u201cnot a safe store of value,\u201d according to a new research report from the Bank for International Settlements (BIS).<\/p>\n<p>According to the report, the BIS found that from January 2019 to September 2023, fiat-backed stablecoins were able to maintain their peg ratio only 94% of the time, falling short of the 100% assurance often promised in project white papers.<\/p>\n<p>Crypto-backed stablecoins and commodity-backed stablecoins fared even worse, with peg ratios of 77% and 50%, respectively.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Lack of data about users &amp; uses of <a rel=\"nofollow\" href=\"https:\/\/twitter.com\/hashtag\/stablecoins?src=hash&amp;ref_src=twsrc%5Etfw\">#stablecoins<\/a> makes it difficult to ascertain the risks they pose to the smooth functioning of payment systems &amp; financial stability, which may hamper authorities\u2019 ability to put in place effective policies and safeguards https:\/\/t.co\/XivilF85HI <a rel=\"nofollow\" href=\"https:\/\/t.co\/dAk8U4hEG1\">pic.twitter.com\/dAk8U4hEG1<\/a><\/p>\n<p>\u2014 Bank for International Settlements (@BIS_org) <a rel=\"nofollow\" href=\"https:\/\/twitter.com\/BIS_org\/status\/1722263225377636573?ref_src=twsrc%5Etfw\">November 8, 2023<\/a><\/p>\n<\/blockquote>\n<p>The BIS highlighted that only seven fiat-backed stablecoins managed to keep their deviations from the peg below 1% for more than 97% of their lifespan.<\/p>\n<p>Notably, Tether (USDT) and USD Coin (USDC), the two most-used stablecoins in the market, met this standard, while other fiat-backed stablecoins experienced more frequent and larger deviations from their pegs.<\/p>\n<p>Stablecoins generally attempt to maintain a 1-to-1 peg to an underlying fiat currency, most often the US dollar. However, stablecoins backed by other currencies like the euro or gold have also gained popularity in recent times.<\/p>\n<p>For the purposes of its own research, the BIS categorized stablecoins as either fiat-backed stablecoins, crypto-backed stablecoins, commodity-backed stablecoins, or unbacked stablecoins.<\/p>\n<h2>Concerns about transparency of reserves for stablecoins<\/h2>\n<p><span class=\"replacer\"><\/span><br \/>In addition to questioning the stability of peg ratios, the BIS raised concerns about the lack of scrutiny in stablecoin issuers\u2019 reserve practices, saying some issuers do not engage independent certified public accountants to audit their reserves.<\/p>\n<p>Even when audits are conducted, the BIS noted a lack of a common reporting standard in reserve reports.<\/p>\n<figure id=\"attachment_129404\" aria-describedby=\"caption-attachment-129404\" style=\"width: 1574px\" class=\"wp-caption alignnone\"><noscript><\/noscript><figcaption id=\"caption-attachment-129404\" class=\"wp-caption-text\">Stablecoin reserves. Source: BIS<\/figcaption><\/figure>\n<p>The report emphasized the potential uncertainties regarding the ability of stablecoins to convert users\u2019 assets at par on demand and the potential financial stability implications in the event of a run.<\/p>\n<p>\u201cAs a result, it is impossible to assess with any degree of confidence the quality of the underlying reserve assets of many stablecoins,\u201d the BIS wrote, adding that this makes it \u201cunclear whether these stablecoins would be able to convert users\u2019 stablecoins at par on demand.\u201d<\/p>\n<div class=\"newsletter home-newsletter single\">\n<div class=\"left-side\">\n<p>\n        <em><br \/>\n            Enter your email for our Free Daily Newsletter        <\/em>\n    <\/p>\n<p> A quick 3min read about today&#8217;s crypto news!<\/p>\n<p>    <span class=\"response-msg\" id=\"newsletter-response\"><\/span>\n<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>Read the full article <a href=\"https:\/\/cryptonews.com\/news\/bis-research-report-stablecoins-not-secure-as-store-of-value.htm\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stablecoins. Source: Adobe \/ Grispb Fiat-backed stablecoins are \u201cnot a safe store of value,\u201d according to a new research report from the Bank for International Settlements (BIS). According to the report, the BIS found that from January 2019 to September 2023, fiat-backed stablecoins were able to maintain their peg ratio only 94% of the time, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":82642,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-82641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Stablecoins Not Secure as Store of Value | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Stablecoins. Source: Adobe \/ Grispb Fiat-backed stablecoins are \u201cnot a safe store of value,\u201d according to a new research report from the Bank for\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=82641\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stablecoins Not Secure as Store of Value | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Stablecoins. Source: Adobe \/ Grispb Fiat-backed stablecoins are \u201cnot a safe store of value,\u201d according to a new research report from the Bank for\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=82641\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-09T19:29:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-09T19:29:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1699554043-stablecoins.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=82641#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=82641\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Stablecoins Not Secure as Store of Value\",\"datePublished\":\"2023-11-09T19:29:46+00:00\",\"dateModified\":\"2023-11-09T19:29:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=82641\"},\"wordCount\":418,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Crypto\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=82641#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=82641\",\"url\":\"https:\/\/ifintechworld.com\/?p=82641\",\"name\":\"Stablecoins Not Secure as Store of Value | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-11-09T19:29:46+00:00\",\"dateModified\":\"2023-11-09T19:29:49+00:00\",\"description\":\"Stablecoins. Source: Adobe \/ Grispb Fiat-backed stablecoins are \u201cnot a safe store of value,\u201d according to a new research report from the Bank for\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=82641#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=82641\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=82641#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Stablecoins Not Secure as Store of Value\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Stablecoins Not Secure as Store of Value | iFintechWorld","description":"Stablecoins. Source: Adobe \/ Grispb Fiat-backed stablecoins are \u201cnot a safe store of value,\u201d according to a new research report from the Bank for","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=82641","og_locale":"en_US","og_type":"article","og_title":"Stablecoins Not Secure as Store of Value | iFintechWorld","og_description":"Stablecoins. Source: Adobe \/ Grispb Fiat-backed stablecoins are \u201cnot a safe store of value,\u201d according to a new research report from the Bank for","og_url":"https:\/\/ifintechworld.com\/?p=82641","og_site_name":"iFintechWorld","article_published_time":"2023-11-09T19:29:46+00:00","article_modified_time":"2023-11-09T19:29:49+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1699554043-stablecoins.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=82641#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=82641"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Stablecoins Not Secure as Store of Value","datePublished":"2023-11-09T19:29:46+00:00","dateModified":"2023-11-09T19:29:49+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=82641"},"wordCount":418,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Crypto"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=82641#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=82641","url":"https:\/\/ifintechworld.com\/?p=82641","name":"Stablecoins Not Secure as Store of Value | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-11-09T19:29:46+00:00","dateModified":"2023-11-09T19:29:49+00:00","description":"Stablecoins. Source: Adobe \/ Grispb Fiat-backed stablecoins are \u201cnot a safe store of value,\u201d according to a new research report from the Bank for","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=82641#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=82641"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=82641#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Stablecoins Not Secure as Store of Value"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/82641","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=82641"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/82641\/revisions"}],"predecessor-version":[{"id":82643,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/82641\/revisions\/82643"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/82642"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=82641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=82641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=82641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}