BIS warns of stablecoin risks amid rapid market growth

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Eugene Komchuk

20.04.2026

BIS warns of stablecoin risks amid rapid market growth — Why BIS is concerned about stablecoins

Bank for International Settlements (BIS) General Manager Pablo Hernández de Cos has called for stronger global coordination in the regulation of stablecoins. According to him, US dollar–pegged tokens could have “material consequences” for financial stability and economic policy if they grow to rival traditional money.

Speaking at a Bank of Japan seminar in Tokyo, he noted that current stablecoin models still fall short of functioning as a полноценное means of payment, despite advantages such as fast cross-border transfers and integration with smart contracts, according to the BIS official website.

What’s the problem with stablecoins

De Cos emphasized that the largest dollar-denominated stablecoins, such as USDT and USDC, share more characteristics with investment products than with cash-like money. He pointed to fees and redemption restrictions, as well as instances where their price deviated from the dollar peg in secondary markets.

In his view, these features make stablecoins resemble exchange-traded funds (ETFs), while still carrying risks of bank runs and contagion effects. This is because issuers hold reserves in short-term government bonds and bank deposits. In times of stress, rapid outflows could force the liquidation of these assets or put pressure on the banking system.

He also noted that the use of public blockchains and non-custodial wallets places a significant share of activity outside standard AML and counter-terrorism financing frameworks. This could make stablecoins attractive for illicit use unless specific safeguards are introduced.

Growth despite criticism

The stablecoin market continues to grow at a record pace despite increasing regulatory scrutiny. According to CoinMarketCap, total stablecoin market capitalization has already exceeded $323 billion. These assets are widely used for trading, transfers, liquidity storage, and increasingly for real-world payments. As DeFi and tokenization develop, demand for such instruments continues to rise.

In this context, statements from regulators and even stricter rules are unlikely to stop the trend. Instead, the market is more likely to adapt, shifting structure and redistributing liquidity across jurisdictions.

As previously reported, stablecoins are increasingly evolving from speculative instruments into practical tools for cross-border payments.

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