Banks Defy BIS Concerns, Press Ahead with Stablecoin Plans

The Bank for International Settlements (BIS) has expressed concerns about stablecoins, stating that they do not qualify as money on a large scale. BIS general manager Pablo Hernández de Cos argued that stablecoins lack three key properties: singleness, interoperability, and financial integrity. He cited the example of Tether's USDT tokens and Circle's USDC tokens, which are not directly exchangeable due to price fluctuations.

Despite these concerns, major banks such as Bank of America, Wells Fargo, Santander, Citi, Goldman Sachs, and UBS are moving forward with plans to issue their own stablecoins on public blockchains. The GENIUS Act, implemented in July 2025, allowed banks to obtain federal-level access through subsidiaries approved by the OCC, but prohibited issuers from paying interest to holders.

Banks fear that if they do not adapt to this new technology, stablecoin issuers could pull deposits away from traditional banks. In fact, Bank of America CEO Brian Moynihan warned that up to $6 trillion in deposits could leave banks if stablecoin issuers were allowed to offer yield.