The head of the Bank for International Settlements says stablecoins do not have the credibility to handle large-scale payments, and he is backing tokenized deposits as the better path for dig
The head of the Bank for International Settlements says stablecoins do not have the credibility to handle large-scale payments, and he is backing tokenized deposits as the better path for digital money. It is a direct shot at one of crypto’s fastest-growing sectors, delivered from the top of the institution that coordinates the world’s central banks.
The core of the message is blunt: stablecoins lack the credibility needed to move money at scale, according to remarks published by the Bank for International Settlements. For related coverage, see Former Uber, Lyft and Bird executive Travis VanderZanden joins Polymarket as chief growth officer.
The criticism is aimed squarely at payments, not at crypto trading or speculation. The question the BIS chief raises is whether privately issued tokens can be trusted to settle payments across an entire economy. For related coverage, see BitGo Acquires NYDIG's Institutional Trading Business: What It Means.
That framing matters because of who is saying it. When the BIS, the central bank for central banks, casts doubt on a payment technology, regulators and monetary authorities tend to listen. For related coverage, see Bitcoin Miner IREN Shares Fall as AI Conversion Costs Mount.
Instead of stablecoins, the BIS chief favors tokenized deposits, a model where commercial bank deposits are represented on a digital ledger while staying inside the regulated banking system.
The distinction is the whole argument. A tokenized deposit is a claim on a supervised bank. A stablecoin is a claim on a private issuer’s reserves, and it is that gap in credibility the BIS is pointing to for large-scale use.
By elevating tokenized deposits, the BIS is drawing a line between digital money that lives within existing bank rails and digital money that sits outside them. For payment infrastructure, that is the dividing line official-sector thinking keeps returning to.
The stance lands in the middle of a live debate over who runs the future of payments. Figures like Cathie Wood have argued that stablecoin issuers could disrupt card networks such as Visa and Mastercard, a view the BIS position pushes directly against.
It also arrives as traditional institutions deepen their crypto footprint, with firms like Charles Schwab expanding crypto trading for mainstream investors. The BIS message suggests the official sector wants that expansion channeled through banks, not around them.
For stablecoin adoption, the signal is a headwind. If the institution that coordinates central banks treats stablecoins as unfit for payments at scale, the narrative pressure on issuers to prove otherwise only grows.
So the fight over digital payment rails now has a clear fault line: private stablecoins on one side, bank-backed tokenized deposits on the other. Which model do regulators ultimately trust with the world’s money?
Additional source references: source document 1.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
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