BlockBeats News, August 29th, the General Manager of the Bank for International Settlements (BIS), Pablo Hernández de Cos, stated that stablecoins currently lack credibility as a widespread means of payment. In contrast, tokenized bank deposits are more likely to maintain the existing monetary system foundation while leveraging blockchain technology.

Hernández de Cos pointed out that although stablecoins may reduce government financing costs, if a large amount of bank deposits shift to stablecoins, it could drive up bank financing costs. Ultimately, these costs could be passed on to households and businesses through higher loan rates. In addition, limited interoperability between stablecoins, challenges in uniformly enforcing anti-money laundering rules, and the expansion of USD-backed stablecoins for use outside the United States all pose financial stability and monetary sovereignty risks.

A recent study by the BIS's Financial Stability Institute (FSI) also revealed significant regulatory variances among the United States, the European Union, the United Kingdom, Hong Kong, and Singapore regarding stablecoin issuers. The US and Singapore have relatively stringent restrictions on non-bank issuers. The US's GENIUS Act, for instance, fundamentally restricts payment-type stablecoin issuers from engaging in lending, pledging, proprietary trading, and third-party crypto asset custody activities. On the other hand, Hong Kong, the UK, and the EU allow some related activities to be conducted upon obtaining additional authorization or regulatory approval.