BIS Report Questions Whether Stablecoins, CBDCs Can Create Risks in Developing Countries

BIS Report Questions Whether Stablecoins, CBDCs Can Create Risks in Developing Countries
A number of emerging markets and developing economies (EMDEs) have been looking at stablecoins and central bank digital currencies (CBDC) to address weaknesses in their financial systems. But according to a paper released Friday by the Bank for International Settlements (BIS), these digital currencies may create daunting issues in these markets and not address problems that other fintech innovations are tackling. “Stablecoin arrangements aspire to improve financial inclusion and cross-border remittances – but they are neither necessary nor sufficient to meet these policy goals,” the authors of the report, entitled What Does Digital Money Mean for Emerging Market and Developing…