BIS chief says stablecoins lack credibility for large-scale payments and backs tokenized deposits

BIS General Manager Pablo Hernández de Cos said at the Jackson Hole Economic Policy Symposium that stablecoins are “not a credible means of payment at scale,” adding that tokenized deposits are a more promising approach to apply tokenization to everyday payments, with stablecoins potentially relegated to more specialized uses ^[1].

Crypto Briefing reported that Hernández de Cos argued tokenized deposits could help reshape financial systems by improving stability and compliance, and that he suggested the approach could have implications for monetary sovereignty and banking ^[2].

Crypto reporting also stated that Hernández de Cos contrasted stablecoins’ lack of credibility for large-scale payments with a “more promising” BIS framework based on tokenized deposits, and that the discussion referenced a new FSI study about differences in issuer rules ^[3].

Cryptopolitan reported that, despite BIS’s position that stablecoins do not qualify as money at a large scale, major banks are shifting settlement and routine transactions toward publicly accessible blockchains, while citing Hernández de Cos’s view that a tokenized-deposits framework “looks more promising” than stablecoins ^[4].