BIS Chief Warns Stablecoins Lack Credibility for Large-Scale Payments
The Bank for International Settlements (BIS) has expressed skepticism towards stablecoins as a means of large-scale payment, according to Pablo Hernández de Cos, the head of the BIS. Speaking at the Jackson Hole symposium on August 28, he stated that stablecoins lack credibility for this purpose.
The BIS is not alone in its concerns about stablecoins. A recent study by the Financial Stability Institute (FSI) found that issuance rules for stablecoins vary significantly across different markets, including the United States, the European Union, the United Kingdom, Hong Kong, and Singapore.
Pablo Hernández de Cos proposed tokenized deposits as a more suitable solution for large-scale payments. Unlike stablecoins, which are issued by private companies and backed by reserves, tokenized deposits remain within the traditional banking system and under its existing prudential framework.