The Bank for International Settlements (BIS), often referred to as the central bank of central banks, has named Pablo Hernández de Cos as its next General Manager. Currently serving as the governor of the Bank of Spain, Hernández de Cos will assume his new role at the BIS on July 1, 2025, for a five-year term.
A Champion for Digital Currencies
Hernández de Cos’s appointment comes at a pivotal time for the BIS, as the organization increasingly focuses on digital currencies and the regulation of cryptocurrencies. As a vocal advocate for a digital euro, Hernández de Cos has urged the European Central Bank (ECB) to press forward with its plans for a central bank digital currency (CBDC).
A digital euro could foster innovation in payments, strengthening the international role of the euro and supporting the growth of the European economy.
Pablo Hernández de Cos, in a speech at the Central Bank of Ireland in 2022
His support for digital currencies aligns with the BIS’s growing involvement in CBDC projects. The organization has been collaborating with several central banks to explore how digital currencies could improve cross-border payments, address privacy concerns, and create a more efficient financial system.
Shaping Global Crypto Regulations
In addition to his work on digital currencies, Hernández de Cos has played a significant role in shaping global regulations for cryptocurrencies. As the chair of the Basel Committee on Banking Supervision, he oversaw the development of a comprehensive set of guidelines for banks engaging with digital assets in 2022.
These rules, which establish capital requirements and risk management standards for banks holding crypto assets, are expected to have far-reaching implications for the integration of cryptocurrencies into the traditional financial system. With Hernández de Cos at the helm, the BIS is likely to continue its push for a more robust regulatory framework for digital assets.
A Seamless Transition
Hernández de Cos will succeed Agustín Carstens, who has served as the BIS General Manager since 2017. Under Carstens’ leadership, the BIS has taken an increasingly proactive stance on digital currencies and crypto assets, establishing an Innovation Hub to foster collaboration among central banks and explore new financial technologies.
As Hernández de Cos prepares to take the reins, he is expected to build upon Carstens’ legacy, further solidifying the BIS’s position as a key player in the rapidly evolving world of digital finance. His experience as a central banker, coupled with his expertise in digital currencies and crypto regulations, makes him well-suited to guide the BIS through the challenges and opportunities that lie ahead.
A Global Mandate
The BIS, which is owned by 63 central banks, serves as a forum for international monetary cooperation and a center for economic and financial research. As the new General Manager, Hernández de Cos will be responsible for overseeing the organization’s activities and ensuring that it continues to support central banks in their efforts to maintain monetary and financial stability.
With central banks around the world grappling with the implications of digital currencies and the rise of cryptocurrencies, Hernández de Cos’s leadership will be crucial in fostering collaboration and driving innovation in the global financial system. His appointment reflects the growing importance of digital assets and the need for central banks to adapt to the changing landscape of money and finance.
Looking to the Future
As Hernández de Cos prepares to take the helm of the BIS, the organization faces a rapidly evolving financial landscape marked by the emergence of digital currencies, the growth of decentralized finance (DeFi), and the increasing adoption of cryptocurrencies by institutional investors.
Under his leadership, the BIS is expected to play a crucial role in shaping the future of money and finance, working closely with central banks and regulators to navigate the challenges and seize the opportunities presented by these transformative technologies. With his expertise in digital currencies and his commitment to fostering innovation, Hernández de Cos is well-positioned to guide the BIS through this pivotal moment in the history of finance.
As the world watches, the BIS and its new General Manager stand ready to embrace the future of money, charting a course toward a more efficient, inclusive, and resilient global financial system. The appointment of Pablo Hernández de Cos marks the beginning of a new chapter for the BIS, one that promises to be both challenging and transformative as the organization seeks to shape the digital financial landscape of tomorrow.
