BIS Chief Warns Stablecoins Could Make Bank Borrowing More Expensive

Bank for International Settlements chief Pablo Hernández de Cos warned on August 28 that stablecoins could make borrowing more expensive as banks expand into digital money. According to BeInCrypto, he said the growth of stablecoins may pressure banks’ deposit base and force them to introduce new products, while Federal Reserve researchers view the tokens as potential competitors to traditional transaction accounts. The article also cites bank and industry efforts including J.P. Morgan’s JPM Coin, Société Générale-FORGE’s CoinVertible and Qivalis’s planned euro stablecoin.