Agustín Carstens, the former head of the Bank for International Settlements, has shifted his long-skeptical view of stablecoins. In a recent statement, he said digital assets pegged to fiat currencies can coexist with traditional money — and even boost financial inclusion and innovation. But he warned that such a future depends on tight global regulation.
A change in tone from Basel
Carstens ran the BIS from 2017 to 2024, a period when the central bankers' bank often warned that stablecoins posed risks to monetary sovereignty and financial stability. He now describes them as a tool that could broaden access to payments and savings, especially in underbanked regions. The shift is notable because it comes from one of the most influential figures in global central banking.
The case for coexistence
Carstens didn't say stablecoins should replace cash or central bank digital currencies. Instead, he argued they can work alongside fiat money. He pointed to their potential to speed up cross-border transactions and lower costs for ordinary people. Financial inclusion was a key theme: stablecoins could bring people who lack bank accounts into the formal economy, he said.
The regulatory plea
None of this works without rules. Carstens stressed that authorities must build a global regulatory framework to manage risks like money laundering, consumer protection, and systemic spillovers. He didn't endorse any specific proposal, but his call for coordinated oversight echoes recent moves by the Financial Stability Board and the IMF. The question now is whether national regulators can agree on common standards — or whether a patchwork of rules will stifle the innovation Carstens says he wants.
His comments add to a growing debate inside central banks. Some officials still see stablecoins as a threat to their control over money supply. Others, like Carstens, are beginning to see room for both. The industry will be watching closely to see whether his softened stance signals a broader shift at the BIS itself.
