BIS Chief Says Stablecoins Not Credible Money at Scale

Bank for International Settlements (BIS) General Manager Pablo Hernández de Cos warned central bankers at the Jackson Hole Economic Policy Symposium that stablecoins do not meet the core properties of money and that tokenized deposits should handle most everyday payments.

Four Shortcomings Identified

De Cos highlighted four areas where stablecoins fall short:

• Par redeemability – issuers cannot guarantee a one‑to‑one cash‑out like a bank deposit.
• Elasticity – supply does not expand and contract with real economic activity.
• Interoperability – tokens move poorly across competing blockchains.
• Financial integrity – self‑custodied wallets hinder anti‑money‑laundering enforcement.

Tokenized Deposits as an Alternative

De Cos advocated for tokenized deposits, describing them as account‑based bank liabilities settled through central‑bank reserves. He argued that this approach preserves the “singleness” of money and aligns with monetary‑integrity standards.

Scale of the Stablecoin Market

Global stablecoin supply has risen to $308 billion, up more than 14 % year‑over‑year, with Tether’s USDT accounting for roughly 60 % of that total. The BIS chief contended that the asset class is not structurally built for such scale.

Contextual Market Movements

The remarks coincided with Bitcoin slipping below $80,000 following a hawkish keynote by Federal Reserve Chair Kevin Warsh at the same symposium, linking stablecoin discussions to broader monetary policy and government financing considerations.