Crypto news

Former head of the Bank for International Settlements (BIS) Agustín Carstens made a significant statement during a speech at the Point Zero Forum in Zurich, signaling a potential evolution in the views of the regulatory establishment. According to him, stablecoins could become a catalyst for financial innovation, expand access to financial services, and reduce transaction costs. This sharply contrasts with his previous, much harsher rhetoric.

From Criticism to Pragmatism

Carstens emphasized that regulators need to create an environment where fiat money and stablecoins can coexist. He also noted that ensuring global interoperability of stablecoins with traditional currencies requires international coordination, which, in his assessment, currently lags significantly behind the pace of market development. Previously, as head of the BIS, Carstens was one of the most vocal opponents of private digital currencies, warning about the risks of unbacked reserves and non-compliance with the basic criteria of sound money.

It is important to understand that his new position is not a complete capitulation to the crypto industry. Carstens no longer represents the BIS, and his personal opinion does not reflect the organization's policy, which continues to adhere to a more conservative approach. In its latest report, the BIS directly stated that stablecoins, while demonstrating the benefits of tokenization, do not possess the fundamental properties of trusted money and create risks for financial stability and monetary sovereignty. The organization is betting on tokenization within the regulated banking system, relying on CBDCs and deposits.

The Regulatory Landscape Changes the Game

Carstens' softening tone comes amid the active formation of a regulatory framework for stablecoins in key jurisdictions. The GENIUS Act has come into effect in the United States, and MiCA is in force in Europe. It is the emergence of clear rules that apparently forces former critics to acknowledge that stablecoins are not a temporary phenomenon but an integral part of the future financial system. However, as the former BIS head rightly noted, national laws alone are insufficient for cross-border use — global coordination is needed, otherwise we risk ending up with a fragmented market.

Expert opinion: The shift in rhetoric from such an influential figure as Carstens is a powerful signal for the market. It confirms that even the most conservative circles recognize the inevitability of integrating stablecoins into the global economy. However, the key question remains open: can regulators from different countries agree on common standards faster than the stablecoin market capitalization reaches trillion-dollar levels, as analysts at Jefferies predict? The answer to this will determine whether the coexistence of fiat and stablecoins becomes harmonious or chaotic.