BIS General Manager Says Tokenized Deposits Beat Stablecoins for Digital Payments

The Bank for International Settlements (BIS) is signaling a preference for tokenized deposits over stablecoins for the future of digital payments. While both technologies aim to speed up transactions, the BIS argues that tokenized deposits are safer because they are integrated into the regulated banking system. For retailers and operators, this suggests the next wave of 'instant' payment settlement won't necessarily come from volatile crypto assets, but from your existing bank account infrastructure. Tokenization allows money to move instantly and operate with 'smart contracts'—meaning a payment could be automatically triggered the moment a customer signs a financing agreement or a delivery is confirmed. This reduces the risk of failed payments and lowers administrative costs. Unlike stablecoins, which often lack transparency, tokenized deposits maintain the 'singleness of money,' ensuring that one digital dollar is always exactly equal to one physical dollar. For businesses offering consumer financing, this evolution could eventually mean lower processing fees and immediate access to funds. It points toward a future where the friction between a lender approving a loan and the merchant receiving the cash is virtually eliminated. You don't need to change your tech stack today, but you should monitor how your primary banking partners are adopting tokenization standards.

Source: PYMNTS

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