Agustín Carstens, former general manager of the Bank for International Settlements (BIS), has adopted a notably more moderate stance toward stablecoins in his latest remarks. Speaking at the Point Zero Forum on Tuesday, Carstens highlighted that these assets could drive financial innovation, foster inclusion, and help reduce transaction costs.
Softer tone replaces past criticism
While leading the BIS, Carstens distinguished himself with a critical approach toward crypto assets, often voicing skepticism about the sector’s stability and reliability. However, in his recent speech, Carstens argued that it is necessary to create conditions for stablecoins and fiat currencies to co-exist within the financial ecosystem.
Carstens affirmed that stablecoins have the potential to support financial innovation and inclusion, as well as reduce transaction costs, adding that a regulatory framework is needed to enable interoperability between these assets and fiat currencies.
This marks a striking shift from the warnings he issued in earlier years. In a January 2022 address, Carstens expressed concerns that stablecoin issuers could pursue risky strategies with reserve assets to seek returns, undermining the reliability of stablecoins as an effective form of money.
He reiterated similar concerns in one of his final speeches at the BIS in June 2025, warning that stablecoins could generate liquidity risks and fall short of the fundamental criteria required for money serving the public interest.
BIS maintains cautious stance under new management
Despite Carstens’ softened language, the BIS’s current leadership remains measured in its outlook on stablecoins. Pablo Hernández de Cos, the current BIS general manager, stated in April that the stablecoin market remains relatively small and that structural issues make it difficult for these assets to function as true money.
In a report published ahead of its 2026 Annual Economic Report, the BIS echoed these reservations. The institution argued that today’s stablecoin models do not yet meet the essential requirements needed to uphold trust in money. The BIS also noted that widespread adoption could introduce new challenges related to financial stability, bank funding structures, and monetary sovereignty.
Emphasis shifts to regulation and tokenization
On the other hand, the BIS voiced support for integrating tokenization within the two-tiered banking system. The bank suggested that digital representations of assets could open the door to new use cases in programmable finance, all while maintaining public trust in money.
Carstens similarly suggested that the traditional financial system could benefit from innovations in stablecoins, distributed ledger technology, and tokenization. However, he underscored the importance of a coordinated and robust global regulatory framework to foster trust in stablecoin issuers.
According to Carstens, stablecoins could expand far more rapidly if clear rules and a level playing field among issuers are established.
Some major economies have already taken concrete steps in this regard. In the United States, the GENIUS Act, enacted in July 2025, established the first federal framework for payment stablecoins, mandating that issuers maintain 100% reserves in cash and short-term US Treasury securities. In the European Union, the MiCA regulations require issuers to obtain authorization, publish approved technical documents, secure full reserves, and keep reserve assets separate from company funds.
