The Bank for International Settlements has published BIS Paper No 162, compiling a speech by Agustín Carstens and remarks from two panel discussions held at the 24th BIS Annual Conference on “Central banking in times of digitalisation and fragmentation”. The collection focuses on how rapid technological change, shifting macro-financial conditions and a more fragmented global environment are affecting monetary policy, payments and financial stability. Carstens’ speech links the post-pandemic inflation episode and high public debt to the need for monetary and fiscal policies to avoid working at cross purposes, while warning that fragmented politics and limited fiscal space could put central bank autonomy under pressure. He argues that authorities should prevent the “de-institutionalisation of money” by developing institutionally sound digital alternatives to privately issued crypto assets and stablecoins, and sets out a vision for a next-generation monetary and financial system combining tokenised central bank money, tokenised commercial bank deposits and tokenised assets within a robust governance framework anchored in the singleness of money and settlement finality. The tribute panel also highlights Carstens’ role in BIS initiatives including the BIS Innovation Hub, the “Innovation BIS 2025” strategy and work on cross-border payments that helped catalyse the G20 Roadmap for Enhancing Cross-border Payments, while linking his payments principles to Brazil’s Pix and the “Finternet” concept. In the policy panel, central bankers describe more complex trade-offs as uncertainty rises and fiscal constraints tighten, including communication challenges and the risk that central bank interventions are interpreted through the lens of fiscal dominance. The remarks cover approaches such as Chile’s “monetary policy corridor” and expanded use of microdata and higher-frequency indicators, South Africa’s work on a public payments utility to broaden access to cheap and instant digital payments, Korea’s dilemma between monetary easing and housing-price pressures alongside cautions about non-bank stablecoin issuance, and Switzerland’s assessment of how demographics, digital outsourcing risks and geoeconomic fragmentation can weaken policy transmission and complicate financial stability and crisis management.
Bank for International Settlements 2025-11-21
Bank for International Settlements publishes conference paper on central banking amid digitalisation and fragmentation
The Bank for International Settlements released BIS Paper No 162, featuring Agustín Carstens' speech and panel discussions from the 24th BIS Annual Conference on central banking amid digitalisation and fragmentation. Carstens emphasizes the need for institutionally sound digital alternatives to crypto assets and stablecoins, advocating for a next-generation monetary system with tokenised central bank money and assets. The panels discuss complex trade-offs in monetary policy, highlighting initiatives like Chile's "monetary policy corridor" and South Africa's public payments utility.