The Bank of England (BoE) has presented a new position on stablecoins, sending a clear signal for the future of digital means of payment. Governor Andrew Bailey emphasised that stablecoins could play a greater role in the British financial system in the future - provided they meet the same supervisory and security standards as traditional means of payment.
This statement marks a remarkable change of course. While the BoE had adopted a rather sceptical stance towards cryptocurrencies and stablecoins in particular in recent years, it now recognises their potential for Innovation and efficiency in payment transactions. This is also the UK central bank's response to the growing importance of tokenised financial instruments and the progress made by other markets, such as the EU with the MiCA regulations.
New opportunities and regulatory requirements
According to the BoE, stablecoins could be used in the UK payment system in the future - but only if they fulfil the same requirements. Requirements for stability, liquidity, governance and deposit protection fulfil the same requirements as bank deposits.
This means that providers will have to subject themselves to stricter controls in future and, if necessary, fully secure their stablecoins with safe reserves.
This opens up new room for manoeuvre for companies in the crypto sector. Regulated access to payment infrastructures could bridge the gap between traditional financial services and digital assets. At the same time, the BoE is creating clear rules to limit risks for consumers and financial stability.
A signal for the global regulatory race
With its new stance, the UK is positioning itself as a country that Innovation in the financial sector but at the same time Supervisory control wants to preserve. Experts see this as a decisive step towards the country's long-term competitive location for digital financial services especially in comparison to the regulatory initiatives of the EU and the UAE.
The BoE reiterated that while stablecoins open up new possibilities for payments, they must also be subject to the same requirements as conventional means of payment. This balance between openness and regulation could set the tone for the global handling of digital currencies.
Conclusion
The Bank of England's reorientation underlines the fact that stablecoins are no longer a niche phenomenon, but are increasingly moving into the focus of the traditional financial world.
With clear rules for issuers, supervision and consumer protection, the British central bank is laying the foundations for a regulated, secure and innovation-friendly use of digital means of payment.
