According to a paper published by the Bank for International Settlements (BIS) on Friday, stablecoins might present bigger challenges despite their adoption in some emerging markets.
A number of emerging markets and developing economies (EMDEs) have been looking at CBDCs and stablecoins as a possible solution to issues with their financial systems. However, they have not been tested on a large scale and could lead to further issues in these markets instead of addressing the ones other fintech innovations are tackling according to BIS.