The winds of change are blowing through the halls of the Bank for International Settlements (BIS), the Basel-based institution often referred to as the “central bank of central banks.” In a move that could have significant implications for the future of digital currencies and crypto regulation, the BIS has appointed Pablo Hernández de Cos, former Governor of the Bank of Spain, as its next General Manager starting in July 2025.
A Champion of Digital Currencies Takes the Helm
Hernández de Cos brings to the role a strong track record of advocating for central bank digital currencies (CBDCs). During his tenure at the Bank of Spain, he vocally supported the development of a digital euro, arguing that it could “spur payment innovation.” His appointment signals that the BIS may be gearing up to take a more proactive role in shaping the future of digital money.
But Hernández de Cos isn’t just a CBDC enthusiast – he’s also been instrumental in crafting global rules for crypto banking. As chair of the Basel Committee on Banking Supervision, he oversaw the finalization of a landmark set of regulations in 2022 that established a framework for banks’ exposure to digital assets.
“The digital euro can foster payment innovation while preserving the role of central bank money as an anchor.”
– Pablo Hernández de Cos, 2020 speech
A New Era for the BIS?
The BIS, which is owned by 63 central banks, has been increasingly active in the crypto space in recent years. It has collaborated with several central banks on CBDC projects aimed at improving cross-border payments, as well as exploring issues of privacy and advocating for a unified ledger.
Under Hernández de Cos’ leadership, the BIS may double down on these efforts. His appointment comes at a critical juncture, as central banks around the world grapple with the challenges and opportunities posed by the rise of digital currencies.
Continuity and Change
While Hernández de Cos’ appointment represents a new chapter for the BIS, there will also be elements of continuity. The BIS Board has re-elected François Villeroy de Galhau, Governor of the Bank of France, as Chair of the BIS Board. And Tiff Macklem, Governor of the Bank of Canada, will become Chair of the BIS Consultative Council for the Americas (CCA) starting in January.
This leadership team will be tasked with navigating the BIS through an increasingly complex and rapidly evolving financial landscape. As digital currencies move from the fringes to the mainstream, the decisions made in Basel will have far-reaching implications for the global economy.
The Road Ahead
What exactly Hernández de Cos’ tenure will bring remains to be seen. Will the BIS become a more vocal advocate for CBDCs? Will it push for tighter regulation of private cryptocurrencies? How will it navigate the geopolitical tensions that are increasingly shaping the digital currency landscape?
These are the questions that will define the BIS in the coming years. But one thing seems clear: with a digital currency champion at the helm, the “central bank of central banks” is poised to play a pivotal role in shaping the future of money. The crypto world will be watching closely.
