In its annual economic report, the Bank for International Settlements (BIS) has cautioned against stablecoins serving as the backbone of the future monetary system. Despite the burgeoning demand for stablecoins, the BIS contends that they fall short of the prerequisites for a resilient monetary framework. Stablecoins, a class of cryptocurrency tied to traditional assets like the US dollar, are marred by several critical shortcomings, as highlighted by the Switzerland-based institution. Specifically, the BIS identifies three major flaws: the absence of central bank endorsement, inadequate safeguards against illicit activities, and insufficient financial flexibility to facilitate lending. The membership of the BIS comprises prominent global central banks, including the Federal Reserve, the Bank of Japan, and the European Central Bank.