Payments made in ‘stablecoin’, a cryptocurrency usually pegged to a traditional currency, should be regulated in the same way as payments made by banks if it becomes widely used, the Bank of England (BoE) said today. The BoE Chairman also spoke about the central bank digital currency.
In the statement made by the BoE, stablecoins and CBDCs were mentioned. BoE Chairman Andrew Bailey said:
The BoE said that if digital currencies become large enough to have an impact on financial stability, they will need more regulation than they currently do. BoE said:
The BoE is among major central banks around the world ramping up digital cash issuance, a move aimed at fending off potential threats to traditional money and making payment systems more seamless.