Bank of England’s Greene: Stablecoin Demand May Fade Quickly

Odaily reported that Megan Greene, a member of the Bank of England's Monetary Policy Committee (MPC), stated on Sunday that the popularity of stablecoins may soon fade, to be replaced by tokenized deposits—digital versions of traditional bank deposits.

Stablecoins, a type of crypto asset designed to maintain a stable value, have grown increasingly popular in recent years. Although issuance has leveled off in recent months, some still anticipate further growth for stablecoins.

“I think tokenized deposits are likely to supplant stablecoins, and in five years, we might wonder why we were even talking about stablecoins,” Greene said at a conference in Dubrovnik, Croatia. She believes that central bank digital currencies (CBDCs), stablecoins, and digital deposits all have their place in the market. However, once commercial banks realize they could lose traditional bank deposits if they do not act, digital deposits may emerge as the ultimate winner. (Sina Finance)