BIS chief says stablecoins lack credibility for large-scale payments

BIS General Manager Pablo Hernández de Cos, a candidate to succeed ECB President Christine Lagarde, argued stablecoins do not credibly function as a means of payment at scale, favoring tokenized bank deposits instead. He cited limited interoperability, inconsistent AML controls, and risks to monetary sovereignty from dollar-pegged stablecoins used abroad. A BIS-linked FSI study comparing the US, EU, UK, Hong Kong and Singapore found substantial differences in issuer rules. The US GENIUS Act bars issuers from lending, staking, proprietary trading and third-party custody, while restrictions in all five markets apply to the issuing entity, not the wider corporate group.

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