Agustín Carstens, theformer head of the Bank for International Settlements, has taken a moresupportive view of stablecoins, highlighting their potential to improvefinancial inclusion, reduce costs, and support innovation.In parallal, theBank of England revised its proposed stablecoin framework, replacingindividual holding limits with an aggregate issuance cap. Under the updatedapproach, the central bank will no longer cap personal holdings at £20,000 orbusiness holdings at £10 million per coin. Instead, systemic stablecoins willface a temporary £40 billion issuance limit.Several jurisdictionshave already introduced stablecoin-specific rules. TheU.S. GENIUS Act requires full reserves for payment stablecoins, while theEU’s MiCA framework sets rules on authorization, reserve backing, and thesegregation of client assets.From Critic to Cautious Stablecoin ViewSpeaking at the PointZero Forum on Tuesday, Carstens said, “I have come to appreciate whatstablecoins can do to promote financial innovation, inclusion and to reducecosts.” He added that policymakers should aim for conditions where “we can livewith fiat money and stablecoins.”The remarks contrastwith Carstens’ earlier position as a leading critic of crypto assets. In 2022,he argued that stablecoins may not qualify as “sound money” because issuerscould invest reserves in a “risky manner.” In 2025, he also warned that stablecoinscould create liquidity risks.Former BIS general manager Agustín Carstens said stablecoins can enhance financial inclusion and innovation but stressed the need for global regulatory frameworks to enable… https://t.co/ikx4JOMXeZ #Stablecoins #FiatCurrency #FinancialInclusion #Regulations #Innovation— Entrepreneur_cm (@entrepreneur_cm) June 23, 2026Global Rules Needed for StablecoinsWhile Carstens hassoftened his stance, the BIS continues to take a cautious view. Current BISchief Pablo Hernández de Cos said in April that the market remains “small” andfaces structural limits.The BIS also warned that wider adoption could poserisks to financial stability, bank funding, and monetary sovereignty.Carstens saidstablecoins, tokenization, and distributed ledger technology could supportfinance if backed by coordinated global rules. “If we really want a globalsystem where stablecoins can interact with global currency, this has to be acooperative effort worldwide,” he said.This article was written by Tareq Sikder at www.financemagnates.com.