31.08.2026 08:13
The Bank for International Settlements (BIS) has recently reiterated its preference for tokenized bank deposits as a means of preserving the stability of the global financial system, arguing that such digital representations can be integrated into existing regulatory frameworks while maintaining the resilience of traditional banking institutions (BIS, 2023). In contrast, Paolo Ardoino, the chief executive officer of Tether, has contested this view, asserting that fully collateralized stablecoins provide users with a more reliable alternative to the assets held under conventional fractional‑reserve banking models (Reuters, 2024).
Ardoino’s critique centers on the fundamental difference between Tether’s 100 % reserve backing and the practice of issuing money through banks that retain only a fraction of deposits as reserves. He emphasizes that fully reserved stablecoins give holders immediate and verifiable ownership of the underlying fiat, eliminating the counter‑party risk inherent in fractional reserve systems (Tether, 2024). By contrast, the BIS’s advocacy for tokenized deposits implies that banks would issue digital tokens representing claims on existing deposits, thereby preserving the same reserve‑fraction structure but in a digital format (Financial Times, 2023).
The BIS justification for tokenized deposits rests on the belief that digital tokens can enhance transparency, facilitate real‑time settlement, and reduce operational inefficiencies, while still allowing regulators to monitor and control the underlying banking activities (BIS, 2023). However, critics argue that merely digitizing existing claims does not address the core issue of insufficient reserves, and that a shift toward fully backed stablecoins could diminish the role of commercial banks in money creation (Bloomberg, 2024).
The exchange between Ardoino and the BIS highlights a broader debate within the financial community about the future of digital money. As stablecoin adoption accelerates, regulators are increasingly called upon to balance innovation with systemic risk, and the contrasting positions of the BIS and Tether illustrate the divergent pathways that the industry may follow (CNBC, 2024).
