The frenzy of meteoric stocks of Stablecoin Firm Circle (CRCL) shows some signs of cooling.
After reaching a record summit of $ 299 on Monday, the Stablecoin issuer’s shares decreased on Tuesday by 15%, extending a withdrawal which left the actions down approximately 25% compared to their peak. However, at $ 223, they still exchange more than 600% more than their price of Introduction on the stock market at the beginning of the month.
The decline is not surprising because some analysts had already noted the noble evaluation of the action in relation to peers, while ARK Invest has in permanent more than $ 300 million in shares since the IPO.
However, Tuesday’s drop coincided with a new doubt of the bank for international establishments (BIS), a financial institution belonging to central banks, on the future of stablecoins.
In a press release on Tuesday, the bis said that “stablecoins as a form of healthy money fail and that without regulations pose a risk for financial stability and monetary sovereignty”. The institution argued that these tokens cannot guarantee individual parity with the money from the central bank, may have trouble managing liquidity under stress and not having the necessary controls to prevent financial crime.
Instead, the BIS has favored the tokenization of central bank reserves, money from commercial banks and government obligations such as the “next logical step” of financial innovation.
“Stablecoins can possibly play a subsidiary role in the hinterland of the financial system if they are adequately regulated,” wrote the authors, adding that “in addition to acting as a gateway to the cryptographic ecosystem, their future role is not clear.”
These remarks come despite the rapid growth of the stable sector for daily uses such as cross -border payments and transactions, with jurisdictions around the world in favor of regulations for the asset class.
Payment companies such as Stripe, Mastercard and Paypal have developed a range of services based on stables completing traditional banking rails. Stablecoins has facilitated $ 4 dollars in transaction volume in the last 30 days, according to Visa data.
The circle is the transmitter of the USDC
which is the second largest stablecoin on the market with an offer of $ 61 billion, after $ 156 billion USDT from Tether. He also launched a network of payments and funds in April, aimed at competing with established players such as Mastercard and Visa.
