Bank of England to Open Applications for Systemic Stablecoins by Year-End

Odaily Sasha Mills, Executive Director of the Bank of England, stated that the Bank of England views stablecoins as a new form of money and will not pick winners between tokenized deposits and stablecoins. The Bank of England will open applications for systemic stablecoins by the end of the year. Such stablecoins, widely used for payments, could pose risks to financial stability and will be regulated by the central bank. Matthew Long, Director of Payments and Digital Assets at the Financial Conduct Authority (FCA), indicated that other stablecoins are regulated by the FCA, and there is still room for sterling-denominated stablecoins to play a role. Mills also noted that 99% of global stablecoins are denominated in US dollars and do not comply with the US GENIUS Act. The UK is on a parallel timeline with the US in this regard.