BIS WARNS AI-DRIVEN MARKET MOMENTUM IS BECOMING VULNERABLE
The Bank for International Settlements says the AI-driven equity rally is showing growing vulnerability as investors question future profitability and leverage rises across major technology firms.
BIS said tech-sector borrowing exceeded $1 trillion by 2025, while stressing markets currently show no overall signs of stress.
Why markets care: the warning links stretched AI valuations and opaque financing directly to rising financial-stability and bond-market risks.
The head of the BIS, the central bank for central banks, Pablo Hernández de Cos said Friday that stablecoins, in their current form, aren't a credible means of payment at scale, and that tokenized bank deposits are the better path.
A perfectly reasonable thing to say when your shareholders are central banks and the alternative keeps deposits inside the banking system.
LATEST: 🏦 A BIS-led project with 40+ financial institutions found tokenized central bank reserves and deposits could significantly cut settlement times and costs in cross-border payments.