Former BIS chief softens stance on stablecoins, backs coexistence with fiat
Agustín Carstens, former BIS general manager, now takes a more favorable view of stablecoins, saying they can improve financial inclusion, innovation, and lower costs. He suggested fiat money and stablecoins can coexist, a softer stance than his earlier criticism that stablecoins may be too risky to qualify as “sound money” and could create liquidity risks. Despite his shift, the BIS remains skeptical. Current leadership says stablecoins are still too small and structurally weak to function well as money, and widespread adoption could threaten financial stability, bank funding, and monetary sovereignty. The BIS is more positive on tokenization within the existing banking system, seeing it as a way to enable programmable finance while preserving trust. Carstens argued stablecoins need coordinated global regulation and a level playing field to flourish. Existing rules in the US and EU are examples of this trend.
