Federal Reserve, BIS Express Concern as Over 600 Stablecoins 'Depeg', Impacting US Financial System

The 'depegging' of more than 600 fiat-pegged stablecoins in 2023 has sparked concerns from the Federal Reserve and the Bank for International Settlements. Both institutions have questioned the stability and reliability of these digital assets, noting their potential impact on the US financial system. The BIS has highlighted frequent deviations from pegged assets, while the implications of 'depegging' remain unclear. These developments raise questions about the role of stablecoins as a reliable means of exchange.