The head of the Bank for International Settlements, Pablo Hernández de Cos, warned on August 28 that stablecoins could raise borrowing costs as banks broaden their activities in digital money, potentially squeezing banks’ deposit bases and driving the development of new products.

Federal Reserve researchers view these tokens as possible rivals to traditional transaction accounts.

The discussion notes ongoing industry efforts, including JPM Coin from JPMorgan Chase, CoinVertible from Société Générale‑FORGE, and a planned euro-stablecoin from Qivalis.