Former BIS head changes rhetoric: stablecoins can coexist with fiat, but under strict conditions
The stablecoin market continues to exert pressure on traditional financial institutions, and even the most ardent critics of private digital currencies are beginning to soften their stance. At the recent Point Zero Forum in Zurich, former General Manager of the Bank for International Settlements (BIS) Agustín Carstens made a statement that fundamentally differs from his previous views.
Carstens directly stated that regulators should "create conditions under which fiat money and stablecoins can coexist." He acknowledged that "stablecoins" can stimulate financial innovation, enhance financial inclusion, and reduce transaction costs. However, according to him, the key condition for such coexistence is effective international coordination among regulators, which, as he noted, currently lags significantly behind the pace of market development.
This statement appears particularly noteworthy against the backdrop of Carstens' past rhetoric. As head of the BIS, he consistently warned about the risks of stablecoins. As early as 2022, he pointed out that issuers have an incentive to invest reserves in risky assets, questioning the reliability of such coins. And in June 2025, he argued that stablecoins fail three key tests of money: unity, elasticity, and protection against illegal activity.
It is important to understand the context: Carstens no longer heads the BIS and does not speak on behalf of the organization. His new position is more an acknowledgment of the inevitability of integrating stablecoins into the global financial system rather than unconditional support. The BIS itself maintains a much stricter approach. In its Annual Economic Report for 2026, the organization once again emphasized that stablecoins do not meet the basic properties of trusted money and create risks for financial stability, bank funding, and monetary sovereignty. The BIS advocates for tokenization exclusively within the regulated banking system, relying on central bank money.
Carstens' shift in rhetoric coincided with the formation of regulatory frameworks for stablecoins in the US (GENIUS Act) and the European Union (MiCA). However, as the former BIS head rightly noted, national rules are insufficient for cross-border use. Without unified international coordination, stablecoins risk remaining a tool for local speculation rather than a global means of payment.
Expert opinion: The stablecoin market is already too large to ignore. The sector's capitalization is approaching a trillion dollars, and even conservative institutions like the BIS are forced to adapt. However, acknowledging the possibility of coexistence is not a capitulation. It is a signal to issuers: prepare for strict, unified rules of the game, or you will simply be pushed out of the legal field. The battle for the formula of the "digital dollar" is just beginning.