Bank of England weighs regulation of stablecoins

The Bank of England said that stablecoins should be subject to bank-payment rules. Reuters reported this, citing the bank’s statement.

“The prospect of using stablecoins as a means of payment and the emergence CBDC have raised many problems,” said Bank of England Governor Andrew Bailey.

According to the statement, the regulator has not yet decided on issuing a national digital currency. In late April, the central bank announced a recruitment drive for a CBDC research group.

The British regulator believes that stablecoin issuers should comply with capital and liquidity rules, and also offer deposit insurance, similar to banks.

By the end of May, the total market capitalization of stablecoins had surpassed $100 billion. Since the start of the year, the figure has more than tripled, with the segment leader being Tether (USDT) at $62.2 billion.

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