{"id":138406,"date":"2021-09-10T17:15:42","date_gmt":"2021-09-10T17:15:42","guid":{"rendered":"https:\/\/precoinnews.com\/?p=138406"},"modified":"2021-09-10T17:15:42","modified_gmt":"2021-09-10T17:15:42","slug":"stablecoins-defi-will-challenge-traditional-banks-bis","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/stablecoins-defi-will-challenge-traditional-banks-bis\/","title":{"rendered":"Stablecoins, DeFi &quot;Will Challenge&quot; Traditional Banks: BIS"},"content":{"rendered":"<h3>Key Takeaways<\/h3>\n<ul>\n<li>Benoit Coeur\u00e9, the head of the BIS&#8217; innovation hub, has called on central banks to act quickly in response to the rise of cryptocurrencies.<\/li>\n<li>Coeur\u00e9 warned that &#8220;stablecoins and DeFi will challenge banks&#8217; models.&#8221;<\/li>\n<li>The BIS is now more actively encouraging CBDC development by central banks. <\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/08\/23024626\/Phemex-logo-large-no-background.png\"><\/p>\n<p><span>The head of the Bank for International Settlments&rsquo; innovation hub has stated that &ldquo;global stablecoins, DeFi platforms, and big tech firms will challenge banks&rsquo; models&rdquo; in a speech delivered at the Eurofi Financial Forum.&nbsp;<\/span><\/p>\n<h2><strong><span>BIS Warns Central Banks of Stablecoins<\/span><\/strong><\/h2>\n<p><span>Benoit Coeur&eacute;, head of the innovation hub at the Bank for International Settlements (BIS), has warned central banks that they must act quickly in response to the rise of cryptocurrencies and decentralized finance.&nbsp;<\/span><\/p>\n<p><span>Coeur&eacute; was invited to speak at the Eurofi Financial Forum, a European think tank dedicated to financial services. The event took place in Ljubljana Friday.&nbsp;<\/span><\/p>\n<p><span>In the speech, Coeur&eacute; called on central banks to step up their efforts to develop central bank digital currencies (CBDCs) in the face of competition from stablecoins and decentralized finance platforms.&nbsp;<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/09\/06164628\/SIMETRI-banner-square-090621.png\"><br \/>\n<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/07\/20041635\/5.gif\"><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/bit.ly\/3rrBc6j\" width=\"1\" height=\"1\" border=\"0\"><br \/>\n<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/08\/20040114\/Phemex-Category-Banner-Right-Side-082021.png\"><\/p>\n<p><span>While acknowledging the difficulties of CBDC implementation, Coeur&eacute; also delivered a stark warning to central banks:<\/span><\/p>\n<blockquote>\n<p><span>&ldquo;Banks are worried about the implications of CBDCs for customer deposits. Central banks are mindful of these concerns and are working on answers&hellip; But make no mistake: global stablecoins, DeFi platforms, and big tech firms will challenge banks&rsquo; models regardless.&rdquo;<\/span><\/p>\n<\/blockquote>\n<p><span>Coeur&eacute; also outlined several goals for a potential CBDC, including privacy, security, and broad usability.<\/span><\/p>\n<p><span>Today&rsquo;s speech is not the first time the BIS has put forward proposals for CBDC development. In July, the BIS innovation hub, the International Monetary Fund (IMF), and the World Bank released a 34-page report outlining designs for a globally interoperable CBDC to rival existing stablecoins such as Tether (USDT) and USD Coin (USDC).&nbsp;<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/09\/06164628\/SIMETRI-banner-square-090621.png\"><br \/>\n<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/09\/05235752\/Sanctor-demo-day-square.png\"><\/p>\n<p><span>However, it appears that central banks are digging their heels in, as only 8% were considering stablecoins that could be used beyond domestic boundaries.<\/span><\/p>\n<p><span>In the past, the BIS has expressed a negative view of cryptocurrencies, commenting that Bitcoin &ldquo;has few redeeming public interest attributes,&rdquo; citing its occasional use in criminal activities and environmental concerns.&nbsp;<\/span><\/p>\n<p><span>However, judging by the content of Coeur&eacute;&rsquo;s latest speech, it seems the BIS is now more actively encouraging CBDC development. The BIS and other financial institutions have frequently stated fears that private stablecoins may develop as closed ecosystems or &ldquo;walled gardens,&rdquo; creating financial fragmentation and threatening monetary sovereignty.&nbsp;<\/span><\/p>\n<p><em>Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies.<\/em><\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/08\/23024626\/Phemex-logo-large-no-background.pngg\"><br \/>\n<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/08\/20040114\/Phemex-Category-Banner-Right-Side-082021.png\"><\/p>\n<p>The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.<\/p>\n<p>You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.<\/p>\n<p>See full terms and conditions.<\/p>\n<p>Source: <a href=\"https:\/\/cryptobriefing.com\/stablecoins-defi-will-challenge-traditional-banks-bis\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Benoit Coeur\u00e9, the head of<\/p>\n","protected":false},"author":3,"featured_media":138405,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Stablecoins, DeFi &quot;Will Challenge&quot; Traditional Banks: BIS - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/crypto\/stablecoins-defi-will-challenge-traditional-banks-bis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stablecoins, DeFi &quot;Will Challenge&quot; 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