{"id":71432,"date":"2026-04-21T01:52:03","date_gmt":"2026-04-21T01:52:03","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bis-official-flags-320-billion-stablecoin-market-as-financial-stability-concern\/"},"modified":"2026-04-21T01:52:03","modified_gmt":"2026-04-21T01:52:03","slug":"bis-official-flags-320-billion-stablecoin-market-as-financial-stability-concern","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bis-official-flags-320-billion-stablecoin-market-as-financial-stability-concern\/","title":{"rendered":"BIS Official Flags $320 Billion Stablecoin Market as Financial Stability Concern"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li>BIS General Manager Pablo Hern\u00e1ndez de Cos warned April 20 that <span>stablecoins<\/span>\u2019 $320 billion market poses financial stability and AML risks.<\/li>\n<li>Tether\u2019s <span>USDT<\/span> dominates the <span>stablecoin<\/span> market.<\/li>\n<li>De Cos called for policymakers to refine frameworks using Project Agor\u00e1 as a model for integrating tokenization by 2026.<\/li>\n<\/ul>\n<h2>BIS Chief Warns <span>Stablecoin<\/span> Regulation Gaps Risk Global Financial Fragmentation<\/h2>\n<p>Speaking at a Bank of Japan seminar in Tokyo on April 20, de Cos delivered a speech titled \u201c<a href=\"https:\/\/www.bis.org\/speeches\/sp260420.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Stablecoins: framing the debate<\/a>,\u201d where he outlined the structural risks <span>stablecoins<\/span> pose to credit markets, monetary policy, and financial integrity.<\/p>\n<p>The global <a href=\"https:\/\/news.bitcoin.com\/stablecoin-market-crosses-320b-as-tether-usdt-dominance-falls-2-5-in-2026\/\">stablecoin market<\/a> stands at approximately <a href=\"https:\/\/defillama.com\/stablecoins\" target=\"_blank\" rel=\"noopener noreferrer\">$320 billion<\/a> as of April 20, 2026. That figure is dwarfed by the roughly $8 trillion held in U.S. bank deposits alone, though de Cos noted the market has held up against recent <span>volatility<\/span> in broader <span>crypto<\/span> markets.<\/p>\n<p>The BIS boss noted that Tether\u2019s <span>USDT<\/span> and Circle\u2019s USDC together account for roughly 85% to 98% of the <span>stablecoin<\/span> supply. Both are pegged to the U.S. dollar, and he explained that approximately 98% of all <span>stablecoins<\/span> are dollar-denominated.<\/p>\n<p>De Cos remarked that <span>stablecoin<\/span> transaction volumes reached around $35 trillion in 2025, but real-economy use was far more limited. Payment-related flows over the same period were estimated at approximately $390 billion, a fraction of what moves through traditional payment systems each year.<\/p>\n<p>\u201cThese challenges require progress along two dimensions,\u201d de Cos said. \u201cFirst, it is important to explore technological solutions and regulatory approaches to mitigate the risks posed by current <span>stablecoin<\/span> arrangements.\u201d<\/p>\n<p>He added that international cooperation is central to any path forward. The BIS General Manager continued:<\/p>\n<blockquote>\n<p>\u201cWithout it, divergent regulatory frameworks for <span>stablecoins<\/span> across jurisdictions could lead to severe market fragmentation or enable harmful regulatory arbitrage.\u201d<\/p>\n<\/blockquote>\n<p>De Cos evaluated <a href=\"https:\/\/news.bitcoin.com\/french-finance-minister-euro-based-stablecoins-vital-to-european-financial-sovereignty\/\">stablecoins<\/a> against two core requirements for functional money: singleness and interoperability. He found <span>stablecoins<\/span> fall short on both. Unlike bank transfers, <span>stablecoin<\/span> transactions do not settle on a central bank\u2019s balance sheet, which leaves open the risk of price deviations from par, especially under stress. Fragmentation across public <span>blockchains<\/span>, such as <a href=\"https:\/\/news.bitcoin.com\/circle-launches-usdc-bridge-for-native-cross-chain-transfers-across-evm-networks\/\">USDC<\/a> operating separately on Ethereum and <span>Solana<\/span>, compounds interoperability problems.<\/p>\n<p>He flagged financial integrity as the most pressing concern. <span>Stablecoins<\/span> circulating on permissionless <span>blockchains<\/span> with unhosted wallets largely operate outside regulatory perimeters and without know-your-customer (KYC) checks, he said, limiting the effectiveness of anti-money laundering (AML) and counter-terrorism financing efforts.<\/p>\n<p>Chainalysis data cited in the BIS speech found that <span>stablecoins<\/span> reportedly account for most illicit transactions within the <span>crypto<\/span> ecosystem. On the monetary policy side, de Cos warned that dollar-pegged <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a> already function as a parallel store of value in emerging market and developing economies.<\/p>\n<p>Wider adoption, he stressed, could weaken domestic monetary transmission, make capital flows more <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-volatility\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">volatile<\/a>, and enable evasion of capital controls. Japan received a positive mention for its early <a href=\"https:\/\/news.bitcoin.com\/japan-stablecoin-regulation-explained-psa-rules-jpy-coins-and-bank-issuers\/\">regulatory approach<\/a>. Amendments to Japan\u2019s Payment Services Act in 2022 became a model that other jurisdictions have since referenced.<\/p>\n<p>Despite that framework, yen-pegged <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a> hold less than 0.01 percent of the market capitalization of dollar-pegged coins, illustrating the limits of domestic regulation alone.<\/p>\n<p>In the speech, De Cos pointed to the BIS Unified Ledger vision and Project Agor\u00e1, a collaborative initiative with the Bank of Japan focused on improving cross-border payments through tokenization, as constructive models for integrating private innovation within the existing two-tier financial system.<\/p>\n<p>He closed by reaffirming that the monetary anchor provided by central banks remains indispensable, regardless of how <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoin<\/a> arrangements evolve.<\/p>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/bis-official-flags-320-billion-stablecoin-market-as-financial-stability-concern\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways: BIS General Manager Pablo Hern\u00e1ndez de Cos warned April 20 that stablecoins\u2019 $320 billion market poses financial stability and AML risks. Tether\u2019s USDT dominates the stablecoin market. De Cos called for policymakers to refine frameworks using Project Agor\u00e1 as a model for integrating tokenization by 2026. [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":71433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71432"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=71432"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71432\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/71433"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=71432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=71432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=71432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}