BlackRock Pushes for Interchangeability Between Stablecoins and Central-Bank Money

BlackRock's head of digital assets, Nikhil Sharma, emphasized that stablecoins must remain interchangeable with bank deposits and central-bank money to function as regulated settlement assets. The European Blockchain Convention's Day 1 media briefing cited Sharma as saying, 'The central issue is the singleness of money,' a principle under which different forms of the same currency remain interchangeable at face value.

According to Sharma, when considering what constitutes cash for payments and settlement, users should look at the claim, backing, form, access, and recourse attached to it. He noted that privately issued stablecoins, commercial-bank deposits, and central-bank money must operate within one financial system. For instance, a user paying with a dollar stablecoin would need their bank to recognize the asset and convert it into a deposit liability without creating uncertainty over its value.

The GENIUS Act in the United States, enacted in July 2025, created a federal framework for payment stablecoins, subjecting issuers to reserve, disclosure, and regulatory requirements. The growth of dollar-linked tokens has raised concerns about dependence on dollar payment products in Europe, where Euro-denominated stablecoins account for only a small share of the market.

Sharma emphasized that investors can benefit from having several forms of digital cash but each form carries its own economic exposure and redemption structure. He stated that 'from an investor-optionality standpoint, having different forms of cash is a good thing. But from a recourse, economic exposure, and risk standpoint, singleness of money is an imperative.'