Bank of England’s Greene: Demand for Stablecoins May Soon Fade

Odaily Planet Daily News: 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, which are digital versions of traditional bank deposits.

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

“I think tokenized deposits are very likely to replace stablecoins. Five years from now, 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, but once commercial banks realize they will lose traditional deposits if they don’t act, digital deposits may emerge as the ultimate winner. (Sina Finance)