Bank of England Treating Stablecoins as 'New Form of Money', Says Exec
The U.K.’s central bank is “not picking winners” in the debate over tokenized deposits and stablecoins, Sasha Mills said Wednesday.
The Bank of England is treating stablecoins as a "new form of money" rather than taking sides in the ongoing debate between tokenized deposits and stablecoins, according to Sasha Mills, the central bank's Executive Director for Banking, Payments and Innovation. Mills made these comments during a Wednesday address, emphasizing that the BoE is "not picking winners" in the evolving digital currency landscape.
The statement comes as regulators worldwide grapple with how to classify and oversee various forms of digital money. Stablecoins, which are cryptocurrencies designed to maintain stable value by being pegged to traditional assets like fiat currencies, have gained significant traction in recent years. Meanwhile, tokenized deposits represent traditional bank deposits converted into digital tokens on blockchain networks, creating competition between these two approaches to digital money.
Mills' remarks suggest the Bank of England is taking a technology-neutral stance as it develops regulatory frameworks for digital currencies. This approach could provide clarity for financial institutions and fintech companies operating in the UK market, potentially encouraging innovation while maintaining regulatory oversight. The central bank's recognition of stablecoins as a legitimate form of money marks a significant shift in institutional acceptance of cryptocurrency-based financial instruments.
The BoE's position will likely influence how other major central banks approach stablecoin regulation, particularly as discussions around central bank digital currencies (CBDCs) continue to evolve globally.
Source: Decrypt
