In a report published on June 24, Bank for international settlements (BIS), an institution consisting of central banks from all over the world, claimed that Fiat-Pegged Stablecoins “fall under the requirements to be the mainstay in the monetary system” because they fail with the three important tests of singleness, elasticity and integrity. However, it claimed that tokenization meets this test.
In one “Special chapter“By BIS’s annual financial report 2025, entitled” The Next Generation Monetary and Financial System “, BIS concluded that, to build on the proposal for a uniform book,” The Truogy “of Tokenized Central Bank Reserves, Commercial Bank Money and Government Bonds,” The next logical step to deliver deep change for it for it for it. “
The report claimed that tokenization can improve efficiency and open new opportunities in cross -border paymentssecurities markets and then at the same time as the most important principles for healthy money.
“Tokenization represents a transformative innovation to both improve the old and enable the new. It paves the way for new events in cross -border payments, securities markets and thereafter,” wrote BIS. “Tokenized platforms with central bank reserves, commercial bank money and government bonds in the center can lay the foundation for the next generation monetary and financial systems.”
But while the report was effusion in its praise for tokenization opportunitiesIt was less enthusiastically over StablecoinsWhich suggests that they do not come to the requirements to be the pillars of the monetary system when set against the three important tests of singleness, elasticity and integrity.
This test is how BIS assesses the suitability for a payment system. “Singless of Money“Refers whether money can be issued by different banks and accepted by everyone without hesitation, otherwise known as” acceptance for payment in pairs “; elasticity Refers to whether money provides the flexibility to meet the need for payments with great value in the economy, “so that obligations are released on time without Gridlock taking over”; and integrity Refers to a system’s ability to protect against financial crime and other illegal activities.
According to BIS, Stablecoins does not meet none of these three criteria and are therefore not suitable for becoming the cornerstone of the next Economic revolution.
How StableCoins come to cards
According to BIS, StableCecoins failed the first test, Singless on MoneyPartly because their value may be due to the relative “creditworthiness” of their issuers and partly because Stablecoins, which are traded in secondary markets at a “exchange rate”, can deviate from pairs – which means a situation can occur where different StableCoin that should be equivalent is not trade in equal value and can no longer be accepted.
“Stablecoin Holdings are tagged with the name of the issuer, much like private banknotes circulating during the free banking time of the 19th century in the United States. As such, Stablecoins often act at various exchange rates and undermine singleness,” wrote BIS.
In the case of elasticity, the StableCoins test failed because assets, for example Tether’s USDT– The world Biggest StableCoin after market case-Can be supported by a “nominal corresponding amount”, which means that “extra emission requires full payment in advance of the holder” which sets a “cash-in-advision limitation.”
In other words, the StableCoin members’ balance sheet cannot be extended at any time; Any additional range of Stablecoins requires full payment in advance from its holders, which differ from banks, who can “elastic expand and contract their balance sheets within regulatory limits.”
Finally, Stablecoin has been well published and has “significant deficiencies when it comes to promoting the integrity of the monetary system” and is likely to know your customer (KYC) and AML weakness against money laundering (AML).
BIS particularly emphasized the ability of digital asset mixers to hide the origin of money and inhibit traceability, as well as blockchain’s tendency for anonymity or pseudoanonymity, which end up KYC stringing.
In spite of these critics the report was not completely rejection of Stabelcoin’s potentialNote that they offer certain benefits, such as programmability, pseudonymity and “Easy access for new users.” In addition, their “technical attributes mean that they can potentially offer lower costs and faster transaction speed” especially for cross -border payments.
“It remains to be seen what role innovations that Stablecoins will play in the future monetary system,” BIS wrote. “But Stablecoins does not stack well against the three desirable properties of sound monetary arrangements and therefore cannot be the mainstay in the future monetary system.”
However, there was another type of asset and financial systems that stacked well.
Tokenization for the victory
As pessimistic as the report was in its assessment of Stablecoins as the next major thing in international payment systems, it was equally optimistic when it comes to tokenization – the digital representation of assets on programmable platforms.
“Tokenisation is to be the next logical step in the development of money and payments,” said BIS, addition that it “integrates messages, reconciliation and settlement into a single seamless operation and can convert cross -border payments and securities markets and initiate a new era for the financial system.”
Specifically, the report pointed to New suggestions for a uniform book It provides a plan for the tokenized financial system. Important parts of the plan are tokenized central bank reserves, tokenized commercial bank money and other tokenized claims on financial and real assets – all “collected in a new type of financial market infrastructure.”
The report claimed that the uniform book can convert intermediary interactions, especially in terms of cross -border payments and by combining programmability and transaction flushing, it can integrate and automate sequences for financial transactions.
“This eliminates delays and reduces manual efforts and reconciliations resulting from the traditional separation of messages, cleansing and settlement,” the report noted.
According to BIS, tokenization also enables a joint implementation of three previously separate steps: the debt of the payer’s account, crediting of the recipient’s account and settlement in the central bank’s balance sheet. This enables “synchronous exchange” of assets so that each transfer only takes place when transferring the others.
In the case of singleness – one of the areas Stabelcoins fell down – the report suggested that Singlenness about private tokenized money and cash would be supported in the same way as it is now for commercial bank deposits, as long as all private tokenized money that issuers followed the same regulatory standards and had access to the same protection measures. It added that individuality between the private tokenized money issued by non-banks and cash could also be maintained during the correct arrangements.
Tokenization can also use Smart contracts-Computer programs that run on a blockchain and automatically trigger when certain pre-fallen conditions are met, without the need for human intervention, which allows central banks to immediately create and adjust their tools, such as distributing new facilities and adjusting interest rates or security requirements.
In this way, “Tokenization can offer flexibility and speed in monetary policy operations” and “improve operating efficiency and promote automation in the Back Office tasks.”
Finally, as tokenized platforms can – in principle – occur continuously, smart contracts can support extended or even 24/7 market operations.
“Tokenization of deposits and central bank money means that both the primary means of payment as well as the decommissioning function for central bank money can be seamlessly integrated on the same programmable platform,” said Hyun Song Shin, economic adviser and head of monetary and economic department at BIS, in June 24 press release. “It has the potential to convert securities markets and its application to correspondent banks is particularly promising.”
This feeling was repeated by Agustín Carstens, Head of BIS, who commented: “The next generation’s monetary and financial system combines the time -tested principles of confidence in money supported by central banks with the functionality that is unlocked through tokenization. This system is pointed out to deliver significant improvements in current practices and enable companies and enable companies with.
Among all praise, BIS admitted that the transition to a completely tokenized financial system would not be without its challenges.
Interoperability between existing account -based systems and new tokenized infrastructures must be ensured; Changes to existing systems will be needed, including booking adjustments and reconciliation processes or message standards; Fragmentation over both inheritance and new networks can be a challenge; And the emergence of tokenized repo transactions contributes to healthy security management requirements.
However, BIS concluded that tokenization represents a “transformative innovation to both improve the old and enable the new” and one that may very well form the basis for the next generation monetary and financial systems.
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