Stablecoins and fiat: ex-BIS head acknowledges possibility of coexistence
The digital asset market continues to reshape the perceptions of even the most conservative institutional figures. Agustín Carstens, former head of the Bank for International Settlements (BIS), made a statement at the Point Zero Forum in Zurich that radically diverges from his previous views. He acknowledged that stablecoins could coexist with fiat money rather than replace it.
"We must create conditions where fiat money and stablecoins live side by side," Carstens emphasized. At the same time, he noted that global integration of stablecoins requires international regulatory coordination, which, in his assessment, currently lags behind market development.
It is worth recalling that Carstens was previously one of the harshest critics of private digital currencies. In 2022, he warned that stablecoin issuers could risk reserves by investing them in high-risk assets, and in mid-2025, he argued that such assets fail fundamental tests of money: unity, elasticity, and protection against illicit activity.
The current stance of the former BIS head is not unconditional support, but a pragmatic recognition of reality. He no longer represents the organization, and his words do not reflect its policy. However, the shift in rhetoric itself is significant: it demonstrates that even the most ardent opponents are beginning to see potential in regulated stablecoins.
The BIS itself maintains a stricter approach. In its latest Annual Economic Report 2026, the organization stated that stablecoins demonstrate only part of the benefits of tokenization but do not meet the basic properties of trusted money and create risks for financial stability and monetary sovereignty. The BIS supports tokenization, but exclusively within the regulated banking system—relying on central banks, deposits, and clear legal frameworks.
Carstens' change in rhetoric coincided with the formation of regulations in the U.S. (GENIUS Act) and the EU (MiCA). However, in his view, national laws are insufficient for cross-border use of stablecoins—global coordination is necessary.
Against this backdrop, let me remind you: Tether co-founder Reeve Collins recently predicted that within five years, all currencies will be represented as stablecoins, while Jefferies analysts warned of deposit outflows from banks if the sector's market capitalization grows to $1.15 trillion.
My expert opinion: The shift in Carstens' position is not just a personal evolution but an indicator that even institutional "hawks" are beginning to realize: stablecoins are not a temporary phenomenon, but an inevitable part of the future financial infrastructure. The only question is whether regulators will manage to create unified rules of the game before the market starts dictating them itself.