Bank of England: Stablecoin Payments Should Be Subject to the Same Rules as Banks


boe stablecoin

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.

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In the statement made by the BoE, stablecoins and CBDCs were mentioned. BoE Chairman Andrew Bailey said:

“The prospect of stablecoins as a means of payment and the emerging proposals for CBDC have created a number of problems. When it comes to the future of these new forms of digital money, it is critical that we ask the difficult and appropriate questions.”

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:

“Stablecoins used as money must meet standards equivalent to those provided by commercial bank money, also known as bank deposits.”

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.