‘Primitive’ stablecoin lacks mechanisms that maintain fiat stability: BIS By Cointelegraph
![‘Primitive’ stablecoin lacks mechanisms that maintain fiat stability: BIS](https://i-invdn-com.investing.com/news/Cryptocurrencies_800x533_L_1556528002.jpg)
Stablecoins lack crucial mechanisms that guarantee money market stability in fiat, and an operational model that gave regulatory control to a central bank would be superior to private stablecoin, a study released by the Bank for International Settlements (BIS) found.
The authors used a “money view” of stablecoin and an analogy with onshore and offshore USD settlement to probe the weaknesses of stablecoin settlement mechanisms.