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BIS chief Pablo Hernández de Cos said stablecoins cannot credibly support payments at scale today. Tokenized deposits are a better option for programmable payments, according to de Cos. Stablecoins and tokenized deposits could coexist under defined roles and safeguards. Different jurisdictions have varying rules on stablecoin issuance and activities. Stablecoins could affect government borrowing costs and banks’ funding expenses.
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