Former BIS head softens rhetoric: stablecoins and fiat can coexist
Former General Manager of the Bank for International Settlements (BIS) Agustín Carstens made a surprisingly conciliatory statement regarding stablecoins. Speaking at the Point Zero Forum in Zurich, he acknowledged that these digital assets could stimulate financial innovation, enhance inclusion, and reduce transaction costs.
"We should try to create conditions where we can live with fiat money and stablecoins," Carstens stated. However, he emphasized that for the global interaction of "stablecoins" with traditional currencies, international coordination among regulators is necessary, which, in his assessment, is currently seriously lagging behind market development.
This statement marks a notable shift in the position of the former BIS head. Previously, while in office, he was one of the most consistent critics of private digital money. In January 2022, he warned that stablecoins could not be considered reliable money because their issuers have an incentive to invest reserves in riskier assets. In June 2025, Carstens even stated that such assets fail three key tests of money: unity, elasticity, and protection against illicit activity.
It is important to understand that his new rhetoric does not imply unconditional support for stablecoins. Carstens no longer heads the BIS and does not speak on behalf of the organization. His position boils down to a pragmatic thesis: coexistence is possible, but only with strict and agreed-upon international rules.
The BIS itself maintains a significantly stricter approach. In a recently published chapter of the Annual Economic Report 2026, the organization directly states that stablecoins demonstrate only part of the benefits of tokenization but do not meet the basic properties of trusted money. Moreover, they create risks for financial stability, bank funding, and monetary sovereignty. The BIS supports tokenization, but exclusively within the regulated banking system — relying on central bank money and controlled intermediaries.
Carstens' softening rhetoric comes against the backdrop of the formation of stablecoin regulation in the US (GENIUS Act) and the EU (MiCA). However, as the former BIS head rightly notes, national rules are insufficient for the cross-border use of these assets — coordination between jurisdictions is needed. For now, the market is moving faster than regulators, and this creates systemic risks that we are already observing in zones of uncertainty.
Expert opinion: Carstens' change in tone is a signal that even the most conservative financial circles are beginning to acknowledge the inevitability of integrating stablecoins into the global financial system. However, the distance from rhetoric to the actual creation of a safe infrastructure is enormous. The key question is not whether stablecoins and fiat coexist, but who will control the bridges between these two worlds and how.