Pablo Hernandez de Cos, General Manager of the Bank for International Settlements, criticized stablecoins during the Jackson Hole Economic Policy Symposium on August 28. He argued that stablecoins fail to deliver par redeemability, elasticity, interoperability, and financial integrity, making them unsuitable for large-scale payments. The BIS chief recommended bank-backed tokenized deposits instead, as they are structured as bank liabilities settled in central bank money. He also warned that dollar-pegged stablecoins could cause digital dollarization, eroding monetary sovereignty in smaller economies. De Cos referenced Wyoming’s Frontier Stable Token (FRNT) as an example of cautious public-sector experimentation with digital assets.
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