Woofun AI reports that the Bank for International Settlements characterizes stablecoins as structurally similar to exchange-traded funds rather than genuine currencies. The central bank highlights that stablecoin prices frequently deviate from par value, while redemption processes face significant delays and uncertainty.

Furthermore, the BIS notes that stablecoin transfers are not settled on central bank balance sheets, making guaranteed par-value exchanges across different issuers and blockchains currently unfeasible. The report also warns that dollar-pegged stablecoins accelerate the dollarization of vulnerable economies, thereby weakening local currencies and facilitating the circumvention of traditional capital controls.