BISness BIS Media Briefing - The next-generation monetary and financial system
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Jun 25, 2025 Hyun Song Shin, Head of Research at the Bank for International Settlements (BIS), and Andréa M Maechler, Deputy General Manager of BIS, delve into the future of money. They discuss the transformative effects of tokenization in banking, highlighting Project Agora's role in enhancing correspondent banking efficiency. The guests explore the impact of stablecoins versus central bank digital currencies, addressing regulatory challenges. Governance complexities are examined as they navigate the integration of new monetary systems and the ongoing evolution of digital finance.
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Tokenization Unlocks Unified Ledger Potential
- Tokenization merges messaging, reconciliation, and asset transfer into a single atomic transaction, improving efficiency in correspondent banking.
- This unified ledger approach supports multiple asset classes, preserves sound money principles, and enables new monetary functionalities.
Stablecoins Face Core Monetary Limits
- Stablecoins currently lack singleness, elasticity, and integrity, limiting their role in the monetary system.
- They may serve as gateways to crypto but are unlikely to become mainstream monetary instruments.
Unified Ledger Streamlines Payments
- Current correspondent banking involves sequential balance-sheet updates, causing inefficiencies and delays.
- A unified ledger with tokenized money enables visible, atomic settlement paths, streamlining payments and compliance checks.