BIS General Manager: Stablecoins Lack Capability for Large-Scale Trusted Payments; Tokenized Deposits Hold Greater Advantage

Odaily News, General Manager of the Bank for International Settlements (BIS), Pablo Hernandez de Cos, stated at the Jackson Hole Global Central Bank Annual Meeting that stablecoins are not capable of serving as a trusted means of payment at scale, and that tokenized deposits have greater advantages in leveraging new technologies. De Cos highlighted multiple issues with stablecoins, including their potential to increase bank funding costs, lead to higher interest rates for ordinary borrowers, undermine the "singleness" of money, lack genuine interoperability across platforms, face challenges in consistently implementing anti-money laundering controls, and the possibility that widespread adoption of dollar-backed stablecoins could erode monetary sovereignty in non-U.S. jurisdictions. U.S. Treasury Secretary Bessent has previously expressed support for stablecoins, stating that they could reinforce the dollar's status as the global reserve currency and generate trillions of dollars in demand for U.S. Treasury bonds.