BIS Challenges Stablecoin Payments as Bank for International Settlements Favors Tokenized Deposits

The Bank for International Settlements (BIS) has taken aim at stablecoin payments in a recent speech by General Manager Pablo Hernández de Cos. At the Jackson Hole Economic Symposium, de Cos argued that tokenized deposits are more likely to perform the role of money due to their ability to preserve 'singleness', the capacity to be redeemed at par into central bank money.

The BIS position is based on a theoretical critique, which sidesteps operational reality. In practice, businesses have already been using stablecoins for cross-border payments, with volumes reaching millions of dollars. These transactions are fast, cost-effective, and transparent, often completing in under five minutes.

For Web3-native organizations like DAOs, stablecoin payments serve as the treasury backbone. They offer programmability via smart contracts, 24/7 settlement, and global accessibility without correspondent banking relationships.