The English central bank raised a proposal to regulate the stablecoin sector and said it is a risk sector. Thus he alerted the intermediaries about the issue.
The Bank of England (BoE) urged lenders to avoid any risk that customers may confuse new forms of electronic money, such as coins stablecoins, with normal deposits guaranteed against bank failures. The English monetary regulator warned that this sector remains tiny compared to the formal financial sector.
The stablecoins They are cryptocurrencies backed by a traditional currencyas the pound sterling or the dollaror by an asset, but regulators are under pressure to keep up with private sector advances in retail payments, as central banks like the BoE are considering issuing a digital version of their currency.
The BoE and the Financial Conduct Authority They proposed this Monday a regulatory regime for retail payment systems systemics that use stablecoins and related service providers, such as payment companiesmarking the first set of rules in the UK in a largely unregulated sector.
Risks of stablecoins
To the extent that systemic payment systems that use stablecoins pose risks Similar to other systemic payment systems, they should be subject to equivalent regulatory standards, the BoE said.
The proposals focus on payment companies, but the BoE also established in a letter to the CEOs of the entities how they should handle “tokenized” depositsif they offer them.
“If deposit takers or their groups wish to issue electronic money or regulated stablecoins to retail customers, they must do so from separate entities that are not deposit takers and are not insolvent,” the BoE said.
The regulators They are collecting opinions before February 6. More detailed draft rules will be put out for public consultation in the second half of 2024, and final rules will be published later.
Source: Ambito
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