Bank of England says Stablecoins Need the Same Ordinance as Banks

June 8, 2021      Sahaj Sharma

The Bank of England has recently stated that stablecoins need to be regulated the same way as the payments are regulated by the banks. BoE revealed today that the payments executed through stablecoin should fall under the same mandates that the transactions that are handled by financial institutions.

Bank of England Suggests Stablecoins Regulation

Discussing further on issuing its own Central Bank Digital Currency (CBDC), the Bank of England said that the body has not yet made a solid decision on whether they are going to issue a CBDC or not.

Andrew Bailey, the Governor or BoE recently released a statement regarding the anticipation  of stablecoins as a method of payment that read:

“The prospect of stablecoins as a means of payment and the emerging propositions of CBDCs have generated a host of issues.”

Continuing the statement and mentioning the future of digital money, Andrew said:

“It is essential that we ask the difficult and pertinent questions when it comes to the future of these new forms of digital money.” 

Bailey also referred to the equivalence standards that both the digital currency and bank money should meet and said:

“Stablecoins used as money should meet equivalent standards as those provided by commercial bank money, otherwise known as bank deposits.”

BoE Continues to Stride With Caution with the Latest Digital Money

The United Kingdom Head of Fintech at the law firm Linklaters, Richard Hay said:

“The Bank of England is taking pains to tread carefully. But the more energy the Bank spends on this question, the more likely it is that we will see some form of a digital pound made reality.”

In addition to this, an in-depth discussion paper was published by the Bank of England surrounding the topics ranging from the prospect of CBDC to stablecoins.

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#Bank of England #Stablecoins
Sahaj Sharma
Sahaj Sharma

Sahaj is an aspiring journalist with a keen interest in cryptocurrency and the whole concept of Blockchain technology. He is positive about the future potential of Cryptocurrency and Blockchain in shaping the world of finance for good. At present, he is covering the latest developments in the field of the cryptosphere.