BIS Chief Says Stablecoins Not Credible for Large-Scale Payments
The Bank for International Settlements (BIS) chief has spoken out against the use of stablecoins as a means of payment, citing several issues.
Pablo Hernandez de Cos, general manager of the BIS, addressed the U.S. Federal Reserve's Jackson Hole Economic Policy Symposium in Wyoming and expressed concerns about the growing popularity of dollar-pegged stablecoins.
De Cos argued that tokenized deposits offer a more compelling case to harness the benefits of blockchain technology while preserving the foundations of the monetary system.
The BIS chief listed several issues with stablecoins, including their potential to erode monetary sovereignty and weaken domestic monetary policy transmission. He also noted that bank funding costs could rise as funds are channeled away from lenders and ordinary borrowers may end up paying higher rates.