BIS chief says stablecoins lack reliability for large-scale payments

Stablecoins are unlikely to be reliable enough for large-scale payment and settlement use, Bank for International Settlements General Manager Pablo Hernandez de Cos said at the Jackson Hole Economic Policy Symposium, according to Reuters. Hernandez de Cos said stablecoins and tokenized deposits can coexist, but tokenized deposits should handle everyday payments while stablecoins should be limited to specialized uses. He added stablecoins could help boost demand for U.S. Treasuries and lower government borrowing costs, but a shift from bank deposits into stablecoins could raise banks’ funding costs and increase lending rates for retail customers. The BIS has consistently expressed a negative view on stablecoins.