The Bank for International Settlements (BIS) has expressed concerns over the potential risks and contagion effects that stablecoins might pose to the financial system. While these digital currencies aim to offer stability by pegging to traditional assets, BIS warns of their insufficient regulation and oversight.

Coinbase, a leading cryptocurrency exchange, has pushed back against these warnings, asserting that stablecoins can enhance financial system stability rather than hinder it. The platform emphasizes the role of stablecoins in advancing digital finance and providing a seamless gateway between the traditional and digital ecosystems.