Former BIS chief admits coexistence of stablecoins and fiat - ForkLog

# Former BIS chief admits coexistence of stablecoins and fiat

Stablecoins can promote financial innovation, inclusion, and cost reduction. This was stated by former Bank for International Settlements (BIS) General Manager Augustín Carstens at the Point Zero Forum in Zurich, reports Cointelegraph.

"We should try to create conditions where we can coexist with fiat money and stablecoins," — said Carstens.

He also emphasized that for the global interaction of "stablecoins" with world currencies, international regulator coordination is needed, which, in his assessment, is currently lagging.

The wording is noticeably softer than Carstens' previous position. During his time at BIS, he was one of the most well-known critics of private digital money. In January 2022, he warned that stablecoins might not be reliable money because their issuers have an incentive to invest reserves in riskier assets. In June 2025, Carstens stated that such assets do not pass three key tests of money: unity, elasticity, and protection of the monetary system from illegal activity.

At the same time, Carstens' new rhetoric does not mean unconditional support for stablecoins. He no longer heads BIS and does not speak on behalf of the organization. His position boils down to the idea that stablecoins can coexist with fiat only under agreed rules.

BIS maintains a more stringent approach. On June 23, the organization published a chapter from the 2026 Annual Economic Report on digital money and tokenization. It states that stablecoins demonstrate some advantages of tokenization but do not meet the fundamental properties of trusted money and can pose risks to financial stability, bank funding, and monetary sovereignty.

The organization supports tokenization within a regulated banking system — based on central bank money, bank deposits, regulated intermediaries, and clear legal frameworks. BIS considers stablecoins as private assets dependent on reserves, issuer rules, and infrastructure.

Carstens' rhetoric has changed amid the development of stablecoin regulation in the US and EU. In the US, the GENIUS Act is in effect; in the EU, MiCA. However, for cross-border use of stablecoins, according to the former BIS head, national rules are insufficient, and coordination between jurisdictions is needed.

Recall that in October 2025, one of Tether's founders, Rive Collins, suggested that in five years, all currencies would be represented as "stablecoins." According to the expert, stablecoins will become the main tool for conducting transactions.

In March 2026, Jefferies analysts urged preparing for deposit outflows from traditional banks as the capitalization of the "stablecoin" sector grows to $1.15 trillion within the next five years.