UK House of Lords Questions Coinbase Executive on Stablecoin Risks

Odaily News The UK House of Lords questioned Tom Duff Gordon, Vice President of International Policy at Coinbase, on Wednesday, focusing on whether stablecoins could lead to a drain on bank deposits and pose new risks to the UK financial system.

Gordon stated that fully reserved and regulated stablecoins are "safer than uninsured bank deposits" because they are backed 1:1 by cash and high-quality government securities and can be redeemed at par value. He emphasized that stablecoins can significantly reduce payment costs and accelerate cross-border payments.

Members of the UK House of Lords raised concerns about redemption risks during crises, potential impacts on banks, and the role of stablecoins in criminal activities. Gordon countered that concerns about bank disintermediation are "greatly exaggerated" and emphasized that Coinbase strictly enforces KYC and anti-money laundering measures. (Cointelegraph)