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Rob Cunningham | KUWL.show
@KuwlShow
THE GREAT BIS MONETARY SLEIGHT OF TONGUE
Read this sentence very carefully: “The Bank for International Settlements says stablecoins are not credible for payments at scale, with its chief pushing tokenized bank deposits instead.”
Now strip away the financial jargon.
Both systems tokenize value.
Both can use programmable digital rails.
Both require rules, reserves, governance and trustworthy operators.
So what is the fundamental difference?
WHO ISSUES THE MONEY-LIKE CLAIM – AND WHO REMAINS AT THE CENTER OF THE SYSTEM.
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A properly regulated sovereign stablecoin can represent money issued or authorized under the laws of an individual nation, whose governing institutions ultimately answer to that nation’s constitutional and political processes.
A tokenized commercial-bank deposit is something very different.
It remains a liability of a commercial bank.
And BIS’s preferred architecture keeps those commercial-bank liabilities anchored to central-bank money inside the existing two-tier banking system.
That isn’t speculation.
That is how BIS itself describes it.
So when BIS declares that stablecoins are not presently “credible” for payments at scale while recommending tokenized bank deposits, the public should ask a much better question:
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Credible according to whom – and credible for what architecture?
Because BIS isn’t rejecting tokenization.
It is championing tokenization.
BIS isn’t rejecting programmable money.
It is developing programmable monetary infrastructure.
BIS isn’t rejecting 24/7 atomic settlement.
Its own Project Agorá is testing exactly that.
What BIS strongly prefers is a particular institutional architecture:
Central-bank money
↓
Commercial-bank money
↓
Tokenized commercial-bank deposits
↓
The public
That distinction changes the entire conversation.
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The real debate isn’t:
DIGITAL MONEY vs. BANK MONEY.
It is increasingly:
WHO GETS TO ISSUE DIGITAL MONEY?
WHO DEFINES ITS RULES?
WHO EARNS FROM ITS circulation?
WHO CONTROLS ACCESS?
WHO PROVIDES THE ultimate settlement asset?
AND TO WHOM ARE THOSE DECISION-MAKERS ACCOUNTABLE?
That is the monetary question of the digital age.
A sovereign nation may decide that appropriately reserved, transparent and legally governed stablecoins serve its citizens better.
BIS may believe that tokenized commercial-bank deposits anchored in central-bank money provide greater stability, singleness and financial integrity.
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Fine.
LET THE TWO IDEAS COMPETE IN THE SUNLIGHT.
But don’t allow the deceptive BIS language to obscure the choice.
Calling one system “tokenized deposits” and the other “stablecoins” can make this sound like a technical disagreement between financial instruments.
It is much bigger.
It is a debate over the architecture of money itself:
1 – Does tokenization decentralize monetary choice and expand competition? or,
2 – Does humanity simply digitize the existing hierarchy – and call the old central bank monetary order “innovation?”
Source(s):
• https://x.com/KuwlShow/status/2093783546334761258
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