Why has Agustín Carstens changed his view on stablecoins?

Agustín Carstens, former General Manager of the Bank for International Settlements, said stablecoins can promote financial innovation, inclusion and lower transaction costs. His comments represent a more supportive position than the warnings he expressed about stablecoin risks while leading the BIS.

What does Agustín Carstens believe stablecoins need to grow further?

Agustín Carstens said stablecoins require stronger international regulatory coordination and a level playing field for issuers. He argued that global rules could increase trust in stablecoin issuers and support broader adoption alongside fiat currencies.

How does Agustín Carstens think stablecoins should coexist with fiat money?

Agustín Carstens said policymakers should establish conditions that allow stablecoins and fiat currencies to operate together. He stated that a cooperative global approach is necessary if stablecoins are to interact effectively with traditional financial systems.

What stablecoin regulations are already in place?

The United States introduced the GENIUS Act, which requires payment stablecoins to maintain 100% reserves in high-quality liquid assets. The European Union regulates stablecoin issuers under the Markets in Crypto-Assets Regulation, which includes licensing, reserve backing and disclosure requirements.

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Former BIS chief backs stablecoin coexistence

Q: What is the current position of the Bank for International Settlements on stablecoins?

The Bank for International Settlements continues to express concerns about stablecoins despite Agustín Carstens' more positive comments. The BIS recently argued that current stablecoin designs may fall short of key characteristics required to function as money and could create financial stability risks.

Written by Mahathir BayenaPublished Jun 24, 2026, 2:10 AM

Former BIS General Manager Agustín Carstens said stablecoins can support financial inclusion, innovation and lower transaction costs.
Carstens called for global regulatory coordination to allow stablecoins and fiat currencies to operate alongside each other.
His comments contrast with earlier warnings he made about stablecoin risks while leading the BIS.

Agustín Carstens, former General Manager of the Bank for International Settlements, said stablecoins can promote financial innovation, inclusion and lower costs, while calling for frameworks that allow them to coexist with traditional fiat currencies.

The remarks mark a shift from Carstens' previous position, as he was among the most prominent critics of stablecoins during his tenure at the BIS and repeatedly questioned their ability to function as sound money.

“I have come to appreciate what stablecoins can do to promote financial innovation, inclusion and to reduce costs,” said Agustín Carstens.

Carstens said stablecoins, distributed ledger technology and tokenisation can benefit the financial system, but added that stronger international regulatory coordination is needed to build trust and support wider adoption.

He also argued that additional regulation and equal treatment for issuers could help stablecoins expand further, while noting that a global framework remains incomplete; following his remarks there was no immediate market reaction reported.

His comments contrast with the position of the Bank for International Settlements, which recently reiterated concerns that stablecoins may fall short of key characteristics required to function as money and could create risks for financial stability.

The debate comes as major jurisdictions continue implementing stablecoin rules, including the GENIUS Act in the United States and the Markets in Crypto-Assets Regulation in the European Union, both of which establish reserve, disclosure and licensing requirements for issuers.