In a pivotal leadership change, the Bank for International Settlements (BIS) has appointed Pablo Hernández de Cos, former Governor of the Bank of Spain, as its next General Manager. Hernández de Cos, a vocal advocate for central bank digital currencies (CBDCs), will take the reins of the Basel-based “central bank of central banks” on July 1, 2025, succeeding Agustín Carstens.
The appointment comes at a critical juncture as central banks worldwide grapple with the rise of cryptocurrencies and explore issuing their own digital currencies. Hernández de Cos brings a wealth of experience and a progressive perspective on digital money to his new role.
A Champion of the Digital Euro
During his tenure as Spain’s central bank chief, Hernández de Cos emerged as a strong proponent of a digital euro. He has repeatedly called on the European Central Bank (ECB) to accelerate its work on a CBDC, arguing that it could foster payment innovation and maintain the relevance of central bank money in an increasingly digital age.
“The introduction of a digital euro would allow us to respond to the growing digitalization of payments while preserving the role of central bank money as an anchor for the payments system,” Hernández de Cos said in a speech last year.
Pablo Hernández de Cos, Former Governor of the Bank of Spain
As the ECB inches closer to a decision on issuing a digital euro, having a supportive voice at the helm of the BIS could provide a significant boost to the project. Hernández de Cos’ appointment may signal a growing consensus among central bankers about the need to embrace digital currencies.
Shaping Global Crypto Regulation
Beyond his advocacy for CBDCs, Hernández de Cos has also played a key role in shaping global crypto banking rules. As chair of the Basel Committee on Banking Supervision, he oversaw the finalization of landmark guidelines for banks’ exposure to cryptocurrencies in 2022.
The rules, which classify certain crypto assets as high-risk and require banks to hold capital against their full value, marked a significant step in integrating digital assets into the traditional financial system. With Hernández de Cos at the BIS, we may see further efforts to harmonize crypto regulations across jurisdictions.
Driving Innovation in Cross-Border Payments
The BIS has been at the forefront of exploring how CBDCs can improve cross-border payments, which remain slow, expensive, and opaque. Under Hernández de Cos’ leadership, we can expect the BIS to double down on its efforts to develop a multi-CBDC platform for seamless international transactions.
The bank has already conducted several successful pilots with central banks, demonstrating the potential of a unified digital currency system to enhance efficiency, reduce costs, and increase financial inclusion. With his expertise in digital currencies, Hernández de Cos is well-positioned to drive these initiatives forward.
A New Era for the BIS?
Hernández de Cos’ appointment comes at a time of profound change for the BIS and the global financial system. As digital currencies gain traction and the boundaries between traditional finance and the crypto world blur, having a leader who embraces innovation while prioritizing stability will be crucial.
Under his stewardship, we may see the BIS take a more proactive role in shaping the future of money, working closely with central banks and regulators to navigate the challenges and opportunities posed by the digital revolution. Whether it’s accelerating CBDC development, harmonizing crypto regulations, or pioneering new models for cross-border payments, Hernández de Cos seems poised to leave his mark on the 93-year-old institution.
As he prepares to assume his new role, all eyes will be on Hernández de Cos to see how he balances the competing demands of innovation and stability in an increasingly complex financial landscape. One thing seems certain: with a digital euro champion at the helm, the BIS is set for an exciting new chapter.
