Former Bank for International Settlements chief Agustín Carstens has shifted his stance on stablecoins, endorsing their potential to enhance financial inclusion and reduce costs during Tuesday’s Point Zero Forum. His comments mark a notable reversal from his previous criticism of crypto assets as unsound money with liquidity risks. The remarks come as the Bank of England overhauls its stablecoin regulatory framework, abandoning individual holding limits in favor of a temporary £40 billion aggregate issuance cap per systemic stablecoin.
The BoE’s updated approach eliminates proposed £20,000 personal and £10 million business holding caps, aligning more closely with emerging global frameworks like the U.S. GENIUS Act and EU’s MiCA regulations. Carstens emphasized that successful stablecoin integration requires coordinated international rules, though current BIS leadership under Pablo Hernández de Cos maintains concerns about market size and stability risks.
FXnCO Insight
The convergence of regulatory frameworks across major jurisdictions signals accelerating institutional acceptance of stablecoins, creating potential opportunities in GBP and EUR-backed digital assets under capped issuance models.
Source: Finance Magnates