The Weekly Peg: Stablecoin crackdowns (1/3)

EU targets Russia's A7A5, ESRB calls for bans, plus lots of chart porn.

Central banks:

— BIS’ Financial Stability Institute argued that while tokenization is transformative but stablecoins face limitations.

Summary: The BIS said that distributed-ledger tokenization of financial assets holds significant promise for payments, securities markets, and cross-border flows — but it expressed caution about stablecoins becoming the backbone of monetary systems, pointing to challenges of “singleness, elasticity, and integrity.” The authors also predicted that tokenized deposits and central-bank-supported tokenized instruments may win over privately-issued stablecoins in the long run. It also called for a ban on the remuneration of stablecoin balances by crypto asset providers (CASPs) and argued that regulatory frameworks must extend oversight to encompass CASPs’ activities related to stablecoins.