BIS General Manager Questions Stablecoin Use at Scale
Pablo Hernández de Cos states stablecoins lack credibility for large-scale payments and contrasts them with tokenized bank deposits while noting risks to borrowing costs and monetary sovereignty.
BIS General Manager Pablo Hernández de Cos stated that stablecoins do not credibly function as a means of payment at scale. He argued that tokenized bank deposits provide a more direct way to use tokenisation while preserving the foundations of the monetary system.
Hernández de Cos acknowledged that stablecoins could lower government borrowing costs but said the shift of deposits into stablecoins could raise costs for consumers if banks pass higher funding expenses on to households and businesses through higher borrowing rates.
He added that stablecoin platforms face limited interoperability and persistent challenges in applying anti-money laundering controls consistently. Wider use of US dollar-pegged stablecoins outside the US could weaken monetary sovereignty and domestic monetary policy, he said.
The remarks come as regulators assess stablecoin adoption. A new study from the BIS-linked Financial Stability Institute shows major differences in how leading markets regulate stablecoin issuers, though exact timing, full context of the remarks, and further details of the study remain unspecified in available reports.