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
Active Management Burden
The ongoing requirement for liquidity providers to monitor and adjust positions in DeFi to optimize returns and mitigate risks.
UAE Stablecoin Regulation
UAE's Central Bank regulations restricting stablecoin use to licensed AED-pegged payment tokens, effective from 2025.
Mainnet
The primary, public blockchain network where real-world transactions and digital assets are processed.
mNAV
Multiple of Net Asset Value - a valuation metric for digital asset treasury companies, representing the ratio of enterprise value to digital asset holdings value.
Market Manipulation (Prediction Market)
The act of intentionally distorting a prediction market’s prices to influence outcomes or perceptions.
Price Chart
A graphical representation of a digital asset's historical price movements over customizable timeframes.