Per Jacobsson Foundation Lecture
Lecture on the occasion of the Bank's Annual General Meeting, Sunday 28 June 2026, Basel, Switzerland
Abstract
Public policy has consistently revealed a preference for less anonymous forms of money. Large denomination currency notes have been phased out, and banks are subject to know-your-customer and anti-money laundering obligations. Stablecoins are a new form of money that can be held either through regulated custodial wallets, which are less anonymous, or self-custody wallets, which are more anonymous. New research shows that over 70% of stablecoin holdings are in self-custody wallets and the majority of all transactions occur between such wallets. Only around 11% of stablecoin transactions can be geolocated, highlighting the limited visibility regulators have into cross-border flows. Therefore, unlike traditional money, stablecoin usage appears to be shifting towards more anonymous forms of holding and exchange. This runs counter to long-standing policy preferences and suggests that current regulatory frameworks may be insufficient to curb illicit activity. The costs – in terms of lost fiscal revenue from tax evasion, evasion of sanctions, circumvention of capital controls and risks to monetary sovereignty – can be significant. Strengthening international cooperation in the regulation of stablecoins will be critical to ensure transparency in money.
Gita Gopinath is the Gregory and Ania Coffey Professor of Economics in the Department of Economics at Harvard University and Professor of Public Policy at Harvard Kennedy School. Her research focuses on international finance and macroeconomics, and she is a leading voice on dollar dominance, exchange rates, trade and investment, international financial crises, monetary policy and debt.
Previously, she was the First Deputy Managing Director of the International Monetary Fund (IMF) from January 2022 to August 2025 and prior to that she was the Chief Economist of the IMF from January 2019 to January 2022.