A recent surge in stablecoins has prompted global banks to reevaluate their regulations regarding crypto assets. This development reflects growing concerns about the implications of stablecoins in the financial system. As stablecoins gain traction, banks are considering how existing frameworks can adapt to these digital currencies. The review aims to address potential risks and ensure that regulations keep pace with the evolving landscape of cryptocurrency. Financial institutions are particularly focused on the stability and security of stablecoins, which are designed to maintain a stable value. The increasing use of these assets raises questions about their impact on traditional banking practices and monetary policy. In response, banks are engaging in discussions to formulate guidelines that balance innovation with risk management.
