The meteoric frenzy of Stablecoin Firm Circle (CRCL) shows some cooling signs.
After reaching a maximum record of $ 299 on Monday, the shares of the Stablecoin issuer decreased 15% on Tuesday, extending a setback that has left the shares approximately 25% since its peak. However, at $ 223, they are still quoting more than 600% higher than their OPI prices earlier this month.
The fall is not surprising since some analysts had already noticed the high valuation of the action compared to the companions, while Ark Invest has continually sold more than $ 300 million in shares since the OPI.
However, Tuesday’s decline coincided with new doubts from the Bank for international agreements (BIS), a financial institution owned by the central banks, on the future of Stablecoins.
In a press release on Tuesday, the BIS said that “the stables as a form of solid money fall short, and without regulation they represent a risk to financial stability and monetary sovereignty.” The institution argued that these tokens cannot guarantee parity one by one with the money from the Central Bank, they can have difficulty managing liquidity under stress and lacking the necessary controls to prevent financial crimes.
On the other hand, the BIS promoted the token of the reserves of the Central Bank, the money of the commercial bank and the government bonds as the “next logical step” in financial innovation.
“Stablecoins can eventually play a subsidiary role inside the financial system if it is regulated properly,” the authors wrote, adding that “in addition to acting as a gateway to the cryptographic ecosystem, its future role is not clear.”
These comments despite the rapid growth of the Stablecoin sector for everyday uses, such as cross -border payments and transactions, with jurisdictions in all regulations for the progress of the world for asset class.
Payment companies such as Stripe, Mastercard and PayPal developed a range of stablecoin -based services that complement traditional bank rails. Stablecoins facilitated $ 4 billion in volume of transactions in the last 30 days, as shown by Visa.
Circle is the USDC issuer
which is the second largest market in the market with a supply of $ 61 billion, after the $ 156 billion USDT of Tether. He also launched a network of payments and remittances in April, with the aim of eventually rival players such as Mastercard and Visa.
