According to Reuters, Bank for International Settlements (BIS) General Manager Pablo Hernández de Cos said at the Jackson Hole Economic Policy Symposium that stablecoins are not a credible means of payment at scale, while tokenized deposits offer a more compelling way to harness tokenization. He said the two could coexist, but tokenized deposits should handle most everyday payments, with stablecoins serving more specialized purposes.

De Cos said stablecoins could lower government borrowing costs by increasing demand for U.S. Treasuries, but the migration of funds from bank deposits to stablecoins could also raise bank funding costs and borrowing rates for ordinary customers. He also cited limited interoperability and difficulties in consistently enforcing anti-money laundering controls. The growing adoption of dollar-pegged stablecoins in some jurisdictions could weaken monetary sovereignty and the effectiveness of domestic monetary policy. Tokenized deposits must also overcome interoperability, governance, and legal challenges.