Stablecoins not credible for payments at scale, BIS chief says
The BIS is again casting doubt on stablecoins as everyday money, saying they do not credibly work as a scalable payment system. BIS General Manager Pablo Hernández de Cos said tokenized bank deposits are a better way to use tokenization while preserving the monetary system’s foundations. He also warned that large stablecoin adoption could raise banks’ funding costs, push up borrowing rates, weaken AML controls, and, if dollar-backed tokens spread abroad, undermine monetary sovereignty and domestic policy. A BIS-linked study found major differences in stablecoin rules across the US, EU, UK, Hong Kong and Singapore. The US and Singapore are more restrictive for non-bank issuers, especially on lending, staking and trading. Hong Kong, the UK and EU are somewhat more flexible, allowing some extra activities with approvals or permissions.
