Pablo Hernández de Cos, General Manager of the Bank for International Settlements (BIS), emphasized the need for global cooperation regarding stablecoin regulation, stating that if dollar stablecoins grow larger than their current size, they could have a significant impact on financial stability. According to Cointelegraph, he stressed, "The current structure of stablecoins has limitations for being widely used as a payment method. In particular, dollar stablecoins like USDT and USDC are closer to investment products than cash. Since their reserve assets consist of short-term government bonds and bank deposits, large-scale capital outflows and resulting chain effects could occur if the market becomes unstable. Therefore, if dollar stablecoins grow enough to compete with fiat currencies, they could have a tremendous impact not only on financial stability but also on global economic policy."
