Bank of England's Greene: Demand for Stablecoins May Fade Quickly

Odaily Odaily reports that Megan Greene, a member of the Bank of England's Monetary Policy Committee (MPC), stated on Sunday that the hype around stablecoins may soon subside, 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 will likely displace stablecoins, and in five years, we may wonder why we were even talking about them,” Greene said at a conference in Dubrovnik, Croatia. She believes there is a market for central bank digital currencies (CBDCs), stablecoins, and digital deposits, but once commercial banks realize they could lose traditional deposits by not acting, digital deposits are likely to emerge as the ultimate winner. (Sina Finance)