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<p><strong>The head of the Bank for International Settlements has argued that stablecoins lack the credibility needed for large-scale payments, and pointed to tokenized deposits as a more suitable foundation for digital money, a stance that lands squarely on Southeast Asia's fast-growing stablecoin remittance corridors.</strong></p><p>The remarks, delivered in a <a href="https://www.bis.org/speeches/sp260828.htm" rel="noopener noreferrer nofollow">BIS speech published on the institution's website</a>, frame the debate around whether privately issued stablecoins can safely serve as core payment infrastructure rather than as speculative crypto instruments. For related policy coverage, see <a href="https://www.kanalcoin.com/coinbase-faryar-shirzad-clarity-act-vote-could-come-next-week/" rel="noopener noreferrer nofollow">Coinbase's Faryar Shirzad on the CLARITY Act vote timeline</a>.</p><div class="on-chain-data" style="background:#0d0f17;border-left:3px solid #ff7043;padding:16px 20px;margin:20px 0;border-radius:4px;"><p style="margin:0 0 8px;color:#ff7043;font-weight:600;font-size:14px;">TLDR KEYPOINTS</p><ul style="margin:0;color:#e6edf3;"><li>The BIS chief says stablecoins lack credibility for large-scale payments.</li><li>Tokenized deposits are positioned as the preferred, bank-aligned alternative.</li><li>The critique centers on trust and integration, not token price performance.</li></ul></div><h2 id="why-the-bis-chief-says-stablecoins-fall-short-for-payments">Why the BIS chief says stablecoins fall short for payments</h2><p>The core argument is about suitability for payment systems, not about crypto trading. In the BIS address, stablecoins are described as lacking the credibility required to move money at scale. For related coverage, see <a href="https://www.kanalcoin.com/charles-schwab-bitcoin-short-squeeze-over-btc-leverage-reset/" rel="noopener noreferrer nofollow">Charles Schwab Says Bitcoin Short Squeeze Is Over as BTC Leverage Resets</a>.</p><p>Credibility matters in high-volume payment systems because participants must trust that value settles at par, on time, and without counterparty doubt. That is the standard the BIS chief measures private stablecoin models against, contrasting them with institution-backed monetary infrastructure.</p><h2 id="why-tokenized-deposits-are-being-positioned-as-the-alternative">Why tokenized deposits are being positioned as the alternative</h2><p>Tokenized deposits are, in plain terms, claims on money held at a regulated bank that are represented and transferred on a shared ledger. Unlike stablecoins issued by private firms, they sit inside the existing banking and settlement framework.</p><p>The BIS chief backs tokenized deposits over stablecoins on grounds of credibility, integration, and scalability. Because they are anchored to supervised banks, they may draw more favorable treatment from regulators weighing how to bring digital money into mainstream payments, in contrast to the mostly on-chain settlement running today across networks like <a href="https://defillama.com/chain/Ethereum" rel="noopener noreferrer nofollow">Ethereum's DeFi ecosystem</a>.</p><p>The distinction is already live in the region. Payment firms have leaned on stablecoin rails for cross-border flows, as seen in the <a href="https://www.kanalcoin.com/openpayd-circle-cross-border-payments/" rel="noopener noreferrer nofollow">OpenPayd and Circle cross-border payments integration</a>, while exchanges pursue similar ambitions through arrangements like the <a href="https://www.kanalcoin.com/dunamu-visa-stablecoin-payments-global-remittances/" rel="noopener noreferrer nofollow">Dunamu and Visa stablecoin remittance partnership</a>.</p><h2 id="what-the-remarks-could-mean-for-regulation-and-digital-payments">What the remarks could mean for regulation and digital payments</h2><p>BIS commentary tends to shape how regulators and banks frame digital asset policy, which gives the statement weight beyond a single speech. The remarks sharpen the divide between private stablecoin adoption and bank-led tokenization models.</p><p>For stablecoin issuers, a credibility-first framing from the BIS could feed into stricter compliance expectations for any project targeting large payment volumes. Institutional players building crypto payment strategies may weigh tokenized deposits more heavily as a result.</p><p>The tension is relevant for Southeast Asia's 700 million people, where stablecoins have become practical tools for remittances and dollar access on platforms serving Indonesia, the Philippines, and Korea. Regional licensing moves, such as <a href="https://www.kanalcoin.com/bitgo-says-it-secured-south-korea-virtual-asset-license/" rel="noopener noreferrer nofollow">BitGo securing a South Korea virtual asset license</a>, show how quickly the compliance landscape is hardening around digital money.</p><p style="font-size:13px;color:#888;border-top:1px solid #333;padding-top:12px;margin-top:30px;">Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.</p><a href="https://www.kanalcoin.com/?p=68928" rel="noopener noreferrer nofollow">Read original article on kanalcoin.com</a>

BIS Chief Says Stablecoins Lack Credibility for Large-Scale Payments

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