What it is
The Bank for International Settlements (BIS) is an international organisation headquartered in Basel, Switzerland. Founded in 1930, it serves as a central bank for 60+ central banks, promoting monetary and financial stability through cooperation. The BIS hosts key standard-setting bodies: the Basel Committee on Banking Supervision, which sets prudential standards for banks; the Committee on Payments and Market Infrastructures (CPMI); and the BIS Innovation Hub (BISIH), which drives CBDC and technology research. While not a direct regulator like national agencies, the BIS shapes global crypto policy through these bodies, issuing frameworks that national regulators adopt.
Crypto framework and stance
The BIS does not itself license crypto firms; rather, it sets global standards. Its crypto framework, driven by the Basel Committee, classifies crypto-assets into two groups: Group 1 (tokenized traditional assets and stablecoins meeting strict criteria) and Group 2 (unbacked crypto-assets like Bitcoin). The prudential standard, effective January 2026, limits bank exposure to Group 2 crypto-assets to 1% of Tier 1 capital and requires a 1250% risk weight. This effectively bans material bank holdings of unbacked crypto. The CPMI-IOSCO guidance on stablecoins outlines risk management and redemption requirements for payment systems. The BIS stance is one of managed integration: it sees value in tokenization and CBDCs but warns of crypto's volatility and illicit use. Annual Economic Reports have consistently criticized crypto as a speculative bubble with structural flaws. As of 2026, the BIS continues to push central banks toward wholesale CBDCs for cross-border settlement, exemplified by Project Agorá and mBridge. This framework compels banks to monitor and cap their crypto holdings, driving many to offload volatile assets or spin off crypto custody. Meanwhile, BISIH projects explore wholesale CBDC platforms that could replace correspondent banking with tokenized central bank money.
Notable actions
The BIS has made its mark through both standard-setting and hands-on projects. In 2022, the Basel Committee finalised the prudential standard, the first comprehensive global rule for bank crypto exposures, setting a 2026 deadline. The standard caps bank holdings of unbacked crypto (Group 2) at 1% of Tier 1 capital and applies a 1250% risk weight, effectively a prohibition. This forced global banks to reassess their digital asset strategies years ahead. Project Agorá, launched in 2024, brings together central banks and private sector to test tokenized cross-border payments, aiming to improve speed and reduce costs. Project mBridge, meanwhile, has progressed to a production-ready platform connecting CBDCs from multiple jurisdictions, challenging the dominance of SWIFT. The BIS’s Annual Economic Reports have been blunt: the 2022 report called crypto a ‘deregulated casino,’ and later editions warned that its collapse could threaten financial stability without robust regulation. These publications act as policy signals to member central banks, urging them to implement stringent oversight.
Key figures
Agustín Carstens, General Manager of the BIS since 2017, is the organisation’s most visible voice on crypto. A former governor of the Bank of Mexico, Carstens has repeatedly described crypto as a threat to monetary sovereignty and a facilitator of crime. Under his leadership, the BIS has pushed both the prudential standard and CBDC initiatives. His speeches and the Annual Economic Reports consistently argue that stablecoins and DeFi pose systemic risks that require global coordination.
What it means for users and builders
The BIS standards, while not directly enforceable on individuals, shape the infrastructure builders rely on. Banks subject to the Basel framework will limit their exposure to Group 2 crypto-assets, potentially reducing liquidity and exchange banking relationships. For stablecoin issuers, the CPMI-IOSCO guidance means meeting rigorous reserve and redemption standards to gain bank access. Builders of DeFi protocols should expect banks to become more cautious, pushing services toward non-bank financial institutions or direct custody models. On the upside, the BIS’s CBDC projects create opportunities for developers in tokenized payment systems and cross-border settlement. For users, the main impact is indirect: fewer bank custodial options for crypto, but clearer regulatory lines may attract institutional participation over time. The BIS’s stance also encourages national regulators to provide legal clarity, which could benefit compliant builders.
Outlook
The BIS will continue to drive global standard-setting, likely extending prudential rules to non-bank intermediaries and deepening CBDC interoperability. Carstens remains in office, so the institution’s critical stance on unbacked crypto is unlikely to shift. As mBridge and Agorá mature, wholesale CBDCs may become operational, offering banks a regulated alternative for settlement. The next frontier will be DeFi regulation, where the BIS may propose norms for smart-contract-based lending. For crypto-native markets, the BIS framework means permanent friction with the traditional banking system, reinforcing a parallel but regulated ecosystem.