Former BIS Head: Stablecoins and Fiat Can Coexist Under Unified Rules
The tone of the discussion around stablecoins is changing. Agustín Carstens, former head of the Bank for International Settlements (BIS), stated at the Point Zero forum in Zurich that stablecoins have the potential to drive financial innovation, enhance inclusivity, and reduce operational costs. This statement marks a notable softening of the position of one of the most consistent critics of private digital money.
From Harsh Criticism to Pragmatism
Recall that as early as January 2022, Carstens warned about the unreliability of stablecoins, pointing to issuers' incentives to invest reserves in risky assets. In June 2025, he argued that such assets fail three key tests of money: unity, elasticity, and protection against illicit activity. Now, his rhetoric sounds different: "We should try to create conditions under which we can live with fiat money and stablecoins." However, this does not mean unconditional support. Carstens emphasizes the critical need for international coordination among regulators, which, in his assessment, still lags significantly behind market development.
Regulatory Context and the BIS Position
The shift in tone occurs against the backdrop of the formation of legislative frameworks for stablecoins in the United States (GENIUS Act) and the European Union (MiCA). Nevertheless, as the former BIS head rightly notes, national rules do not solve the problem of cross-border use. Without global harmonization of standards, we risk ending up with a fragmented market where stablecoins exist in regulatory "gray zones."
It is worth noting that the BIS itself maintains a stricter stance. In its chapter of the Annual Economic Report 2026, the organization acknowledges that stablecoins demonstrate some benefits of tokenization but do not meet the basic properties of trusted money and create risks for financial stability, bank funding, and monetary sovereignty. The BIS is betting on tokenization within the regulated banking system, relying on central bank money, and views stablecoins as private assets whose reliability depends on the reserves and infrastructure of the issuer.
Analyst's Perspective
The evolution of Carstens' views is not merely a personal reassessment but a reflection of objective reality: stablecoins have become too significant an element of the financial system to be ignored. The market is already voting for them with capital, and Jefferies analysts' forecasts of a $1.15 trillion outflow from bank deposits into stablecoins over the next five years look increasingly realistic. However, the key question remains open: will global regulation be able to catch up with innovation, or will we witness a fragmentation of the financial landscape, where each jurisdiction plays by its own rules? My professional analysis shows that coexistence is possible only under strict and uniform standards; otherwise, we risk getting not inclusivity, but a new level of systemic risk.