Tether CEO Paolo Ardoino has challenged the Bank for International Settlements’ preference for tokenized bank deposits, arguing that fully reserved stablecoins give savers a stronger alternative to money held under fractional-reserve banking. BIS General Manager Pablo Hernández de Cos told the Jackson Hole Economic Symposium on Aug. 28 that stablecoins still fall short on redeemability at par, interoperability, financial integrity and monetary sovereignty, and that tokenized deposits—remaining commercial-bank liabilities settled through central bank accounts—better preserve the singleness of money for everyday payments while stablecoins serve specialized uses. Ardoino countered that stablecoins can hold reserves in highly liquid assets such as U.S. Treasuries, asked why savers would keep funds in only partly reserved bank products, and said the system is entering a phase in which shifts into stablecoins become visible. Banks are building competing rails: JPMorgan Chase, Bank of America, Citigroup and Wells Fargo are developing a shared deposit-token network through The Clearing House aimed at the first half of 2027; SWIFT launched a blockchain shared ledger with 17 major banks in July; and Custodia Bank and Vantage Bank are testing a dual-purpose token for a planned fourth-quarter 2026 rollout. In the U.S., banking groups and Citigroup CEO Jane Fraser have pressed lawmakers over stablecoin rewards in the CLARITY Act, warning of deposit flight after the GENIUS Act barred issuers from paying interest directly, while Hernández de Cos noted stablecoin Treasury demand could lower sovereign borrowing costs even as deposit outflows raise bank funding costs.