The Future of Stablecoins: Rethinking Their Role in Global Finance

Last week, the Bank for International Settlements (BIS) released its Annual Economic Report 2025, outlining a future monetary system built on tokenization and unified ledgers. In doing so, the BIS took a firm stance against stablecoins and crypto assets, dismissing them as foundational pillars for next-generation payments.

At GRC Partners, we believe that while some concerns raised by the BIS are valid, their position reflects a broader institutional bias, one that favors the status quo and overlooks the transformative potential of stablecoins in enabling faster, cheaper, and more inclusive financial systems. As regulators and financial institutions debate the future of stablecoins, we think it’s time to reevaluate the narrative.

Singleness of Money: A Matter of Perspective

The BIS argues that stablecoins fragment monetary singleness due to their issuance by multiple private entities and fluctuating redemption values.

Yet, this criticism misses the point. Stablecoins, particularly those backed 1:1 by fiat, have already demonstrated the ability to offer near-instant, low-cost settlement across borders. In many cases, they outperform traditional correspondent banking systems, which are riddled with friction, delays, and high costs. Rather than fragmentation, stablecoins offer agility and access where legacy systems fall short.

Elasticity and Systemic Stability

A key critique in the BIS report is the "cash-in-advance" model of stablecoins, which supposedly limits their capacity to scale liquidity during stress scenarios.

However, this very feature provides greater financial discipline. Stablecoin issuers are required to hold transparent, verifiable reserves on-chain—unlike banks, which operate on fractional reserves and credit creation. This transparency reduces counterparty risk and can make stablecoins less vulnerable to contagion in times of crisis.

AML and Integrity: A Flawed Comparison

The BIS also raises concerns about anti-money laundering (AML) and the supposed anonymity of stablecoins.

This argument underestimates the power of blockchain analytics. Public blockchains create immutable audit trails, enabling real-time tracking of suspicious activity with a level of precision that far exceeds traditional finance. As seen in multiple high-profile enforcement cases tracked by FinCEN, authorities can trace illicit flows on-chain more efficiently than through opaque legacy banking systems.

At GRC Partners, we work closely with blockchain projects, exchanges, and regulators to implement robust crypto AML and compliance programs. The issue isn’t the technology: it’s the regulatory framework around it. Instead of dismissing stablecoins entirely, the solution is smarter compliance, industry collaboration, and the right application of forensic tools.

What’s at Stake in the Future of Stablecoins?

Stablecoins are not a one-size-fits-all solution. They need effective regulation, reserve transparency, and strong governance. But to sideline them completely would ignore their potential to democratize access to digital finance, especially in regions underserved by traditional banking infrastructure.

The harshest critiques often come from institutions whose business models are being disrupted by decentralized, peer-to-peer value transfer systems. That alone signals the magnitude of what stablecoins can achieve.

A Path Forward: Coexistence, Not Competition

The BIS rightfully promotes innovation in central bank digital currencies (CBDCs). But we believe the future of stablecoins and CBDCs isn’t binary: it’s complementary. Both instruments can coexist, serving different segments and use cases within a modernized financial ecosystem.

Millions of users, freelancers, small businesses, and consumers in volatile economies, are already relying on stablecoins today for everyday transactions. Ignoring this adoption curve in favor of an entirely centralized system may limit innovation and financial inclusion.

The GRC Partners View

As a compliance-first advisory firm, we support innovation with governance, risk, and compliance at the core. We help our clients navigate the evolving digital asset space with services ranging from regulatory licensing and AML design to audits and training.

Whether you're a startup launching a stablecoin or a regulator looking to create better oversight tools, we’re here to help.

Conclusion: Stablecoins and the Future of Global Finance

The future of stablecoins will depend on how well the industry and regulators collaborate to build secure, compliant, and transparent systems. Dismissing stablecoins based on outdated assumptions overlooks their real-world utility and potential to transform cross-border payments and financial access.

As the financial ecosystem evolves, stablecoins should not be viewed as a threat but as a tool that, when properly managed, can coexist with traditional finance and accelerate the path toward a more inclusive global economy.

Want to discuss compliance for stablecoins or blockchain infrastructure? Contact GRC Partners to learn how we can support your journey.