Insufficient global regulatory coordination for stablecoins could lead to market fragmentation; BIS reiterates global cooperation.

CoinFeed reported on April 20th, citing Reuters, that Pablo Hernandez de Cos, General Manager of the Bank for International Settlements (BIS), stated that global coordination on the regulation and use of stablecoins is of "critical importance," otherwise divergent regulatory rules across different jurisdictions could lead to severe market fragmentation or regulatory arbitrage. He emphasized that stablecoins could weaken monetary and fiscal policies, trigger financial market stress, and hinder the fight against illicit financing, necessitating strengthened cross-border regulatory cooperation. de Cos pointed out that if stablecoin issuers could access deposit insurance or central bank liquidity support, the risk of a "bank run" would be significantly reduced. He also stated that mainstream stablecoins such as Tether and Circle frequently de-peg due to redemption frictions, resembling ETFs rather than currencies, and mentioned that effectively prohibiting stablecoins from paying interest would weaken the incentive for funds to migrate from bank deposits to stablecoins.