The BIS to Create a Platform for Assessing Consequences of Stablecoins Collapse

The Innovation Hub of the Bank for International Settlements (BIS) intends to develop a platform for assessing the economic potential of stablecoins and crypto lending projects, as well as the financial stability risks associated with them.

The decision has been made by “the collapse of many stablecoins” and problems with companies associated with DeFi protocols.

According to the institution, the information on asset backing, trading volumes and market capitalization is provided by unregulated firms on their own.

Individual datasets and commercially available solutions do not provide comprehensive information or provide transparency, which creates difficulties for regulators.

The platform, which will be open source, will reveal the economic activity of such projects and the risks to financial stability.