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FollowingHead of the Bank for International Settlements: stablecoins lack the credibility of large-scale payments, and tokenized deposits are more popular.
Head of the Bank for International Settlements (BIS) believes that stablecoins lack the credibility required for large-scale payments., and points out that tokenized deposits are more suitable as the basis of digital currency. This stance is directly aimed at Southeast Asia's fast-growing stablecoin remittance channels.
The remarks were made in a speech posted on the Bank for International Settlements website that revolved the debate over whether privately issued stablecoins could safely serve as core payment infrastructure rather than speculative crypto tools.
Summary of Points
The head of BIS said that stablecoins lack the credibility of large-scale payments.
Tokenized deposits are positioned as a more popular alternative consistent with banks.
The core of the criticism is trust and integration, not token price performance.
Why BIS leaders believe that stablecoins are deficient in payments
The core argument lies in the applicability of the payment system, not crypto transactions. In the BIS speech, stablecoins were described as lacking the credibility needed for large-scale money transfers.
In large-value payment systems, credibility is crucial because participants must believe that value can be settled at face value, on time, and without counterparty doubts. This is the standard by which BIS leaders measure the private stablecoin model and compare it with institution-backed monetary infrastructure.
Why tokenized deposits are positioned as an alternative
In short, tokenized deposits are claims on funds held by regulated banks, represented and transferred on a shared ledger. Unlike stablecoins issued by private companies, they exist within existing banking and settlement frameworks.
BIS leaders support tokenized deposits over stablecoins, citing credibility, integration and scalability. Because they are linked to regulated banks, regulators may give more favorable treatment when weighing how to introduce digital currencies into mainstream payments, in contrast to current networks that operate mainly through on-chain settlements, such as Ethereum's DeFi ecosystem.
This difference is already evident in the region. Payment companies have used stablecoin channels for cross-border remittances, such as OpenPayd's cross-border payment integration with Circle, and exchanges have pursued the same goal through similar arrangements, such as Dunamu's stablecoin remittance cooperation with Visa.
What these remarks mean for regulation and digital payments
BIS's comments tend to shape the way regulators and banks formulate digital asset policies, giving the statement more weight than a single speech. The remarks exacerbated the divergence between private stablecoin adoption and bank-led tokenization models.
For stablecoin issuers, the BIS trustworthiness first framework may bring stricter compliance expectations to any project targeting large payments. Institutional participants who are building crypto payment strategies may put more emphasis on tokenized deposits as a result.
The tensions are significant to the 700 million people in Southeast Asia, where stablecoins have become practical tools for sending money and obtaining dollars, serving a platform for Indonesia, the Philippines and South Korea. Regional licensing initiatives, such as BitGo's acquisition of a South Korean virtual asset license, indicate that the compliance environment surrounding digital currencies is rapidly tightening.
