BIS chief states stablecoins unreliable for large-scale payments

Bank for International Settlements General Manager Pablo Hernandez de Cos stated that stablecoins are unlikely to be reliable enough for large-scale payment and settlement use during the Jackson Hole Economic Policy Symposium. He noted that stablecoins and tokenized deposits can coexist, with tokenized deposits suitable for everyday payments and stablecoins reserved for specialized uses. Hernandez de Cos mentioned that while stablecoins could increase demand for U.S. Treasuries and reduce government borrowing costs, a transition from bank deposits to stablecoins might elevate banks' funding costs and raise lending rates for retail customers. The BIS has consistently maintained a negative stance on stablecoins.

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