CoinWorld News reports that Pablo Hernandez de Cos, the General Manager of the Bank for International Settlements (BIS), said that globally coordinated regulation of stablecoins is crucial to preventing severe market fragmentation; otherwise, regulatory differences among different jurisdictions could trigger regulatory arbitrage. He noted that stablecoins are typically pegged 1:1 to dollars, which may weaken monetary and fiscal policy, cause stress in financial markets, and hamper efforts to combat illegal financing. At present, the two major stablecoins issued by Tether and Circle account for about 85% of the approximately $315 billion global stablecoin circulation. He also said that these two types of stablecoins are closer to securities than currencies in terms of redemption frictions, and that they operate more like ETFs.