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● TRACKER Updated 14d ago · 14 sources tracked

Stablecoins not a credible means of payment at scale, BIS chief says

Bank for International Settlements chief Pablo Hernandez de Cos argues stablecoins cannot function as a credible means of payment at scale and may increase bank funding costs. He advocates for tokenized deposits as a superior alternative. Tether CEO Paolo Ardoino disputes this, claiming stablecoins are safer than tokenized bank deposits. Tether is actively challenging the BIS position, citing its reserves as part of its defense.

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  • ✓ Pablo Hernandez de Cos states stablecoins are not a credible payment method at scale.
  • ✓ The BIS suggests tokenized deposits are a more compelling way to harness digital payments.
🛡️ Source Corroboration: 14 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

Tether CEO Paolo Ardoino has explicitly rejected the BIS position, claiming stablecoins are safer than tokenized deposits.

Live updates

  1. BIS Chief and Tether CEO Clash Over Stablecoin Viability

    Bank for International Settlements chief Pablo Hernandez de Cos argues stablecoins cannot function as a credible means of payment at scale and may increase bank funding costs. He advocates for tokenized deposits as a superior alternative. Tether CEO Paolo Ardoino disputes this, claiming stablecoins are safer than tokenized bank deposits. Tether is actively challenging the BIS position, citing its reserves as part of its defense.

    Why it matters

    The debate centers on whether private stablecoins or bank-led tokenized deposits should provide the infrastructure for digital payments. This conflict pits a global regulatory body against one of the largest stablecoin issuers.

    What is confirmed

    • Pablo Hernandez de Cos states stablecoins are not a credible payment method at scale.
    • The BIS suggests tokenized deposits are a more compelling way to harness digital payments.

    Still unconfirmed

    • Tether is using a 3 billion market cap as an opening in its dispute with the BIS.

    What to watch next

    • Publication of audited reserve data by Tether to support its defense.
    Sources used for this update (4)
    1. news.bitcoin.com — Tether CEO Slams BIS Over Tokenized Bank Deposit Push
    2. usethebitcoin.com — BIS Chief Warns Stablecoins Could Raise Bank Lending Costs
    3. thecurrencyanalytics.com — Tether Challenges BIS with Strong Defense of $183B Stablecoin Reserves
    4. newtelegraphng.com — BIS: Stablecoins Not Credible Means Of Payment At Scale
    confidence 90%

  2. BIS chief says stablecoins not credible for large-scale payments

    The Bank for International Settlements (BIS) chief, Pablo Hernández de Cos, states that stablecoins are not a credible means of payment at scale. He suggests that tokenized deposits are a safer payment rail. This view is supported by multiple sources, including Reuters and news.bitcoin.com. The BIS's stance is that stablecoins fail as real money at scale.

    Why it matters

    The BIS's comments on stablecoins come as banks move forward with their own stablecoin plans. The discussion around stablecoins and tokenized deposits is significant because it relates to the future of payments and the role of traditional banking in the digital asset space. Stablecoins are digital currencies pegged to a traditional currency, often the US dollar.

    What is confirmed

    • Stablecoins are not a credible means of payment at scale.
    • BIS chief Pablo Hernández de Cos suggests tokenized deposits as a safer payment rail.
    • Banks are moving forward with their own stablecoin plans despite BIS concerns.

    Still unconfirmed

    • Tether CEO Paolo Ardoino questions why savers would choose banks over fully-reserved stablecoins.

    What to watch next

    • Further comments from regulatory bodies on stablecoins
    • Development of tokenized deposit systems
    • Adoption rates of stablecoins and traditional banking services
    Sources used for this update (10)
    1. Reuters — Stablecoins not a credible means of payment at scale, BIS chief says
    2. OneSafe.io — Stablecoin Payments vs. Tokenized Deposits: The Real Story
    3. AML Intelligence — NEWS: Stablecoins not a credible means of payment at scale, banking group chief says
    4. Cryptopolitan — Banks move stablecoin plans forward as BIS questions their role
    5. ledgerinsights.com — BIS flags stablecoin group activity risks, but OCC charters tell a broader story
    6. forkast.news — At Jackson Hole, the BIS Head Said Stablecoins Fail Every Test of Money. Banks Are Building Them Anyway.
    7. AMBCrypto — BIS warns of ‘digital dollarization’ – What it means for USDT and USDC
    8. Stocktwits — ​Tether CEO Questions Why Savers Would Choose Banks Over Fully-Reserved Stablecoins
    9. news.bitcoin.com — BIS Chief: Stablecoins Still Aren't Credible Money at Scale
    10. finance.yahoo.com — Tether CEO Says Bank For International Settlements Is ‘Rightfully Worried’ Stablecoins Expose Banking’s Fractional-Reserve Problem
    confidence 85%
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