A senior official from the Bank for International Settlements (BIS) has warned that stablecoins are not yet strong enough to serve as a main payment tool in the global economy. While the technology is gaining traction, its role in the real financial system is still limited and cannot match traditional financial infrastructure.
In his speech, he acknowledged that stablecoins offer several advantages such as faster transactions, programmable capabilities, and cross-border transfer facilities. However, real use is still largely concentrated in the crypto ecosystem, mainly for trading purposes, collateral and access to digital assets, rather than for everyday transactions in the real economy.
In terms of numbers, the global stablecoin market has grown rapidly with a value of around US$315 billion in early 2026 and annual transaction volume reaching US$35 trillion the previous year. However, the scale of use as a payment tool is still small. Real payment flows using stablecoins are estimated to be around US$390 billion in 2025, far behind bank deposits in the United States alone which reached about US$8 trillion.
According to him, stablecoins still fail to fulfill the essential characteristics of a primary payment instrument. Among the main weaknesses are system incompatibility, platform interoperability challenges, and issues related to redemption of value that can undermine consumer confidence.
At the same time, he also warned that the uncontrolled growth of stablecoins could put pressure on the financial system. A large shift from bank deposits to stablecoins has the potential to increase the cost of funds for financial institutions and subsequently tighten the supply of credit to the economy.
Other risks raised include the possibility of a “run” phenomenon on stablecoins, in addition to weaknesses in controls on illegal activities such as money laundering and terrorist financing. This is particularly related to the use of public blockchains and digital wallets that do not require identity verification.
Although some countries such as Japan have taken early steps in developing regulatory frameworks, the use of stablecoins backed by local currencies is still small compared to those pegged to the US dollar. This shows that global acceptance is still uneven and depends on trust factors and the stability of the base currency.
Concluding his statement, the official emphasized the need for international cooperation in regulating the development of stablecoins. Without clear coordination, regulatory divergence between countries risks creating market imbalances and opening the door to regulatory arbitrage that could undermine global financial stability.
Overall, stablecoins are still in their early stages as mainstream payment instruments. Without a solid regulatory foundation and structure, their use has the potential to add complexity to an already complex financial system.
