Bank of England Treating Stablecoins as 'New Form of Money', Says Exec
The Bank of England is preparing to accept applications from prospective stablecoin issuers by the end of the year, treating stablecoins as a “new form of money” that must meet the same standards as existing forms. Executive director Sasha Mills emphasized that stablecoins should be as robust as other money and allow end users to choose between stablecoins, tokenized deposits, and e-money in an interoperable way. The Bank is not favoring either tokenized deposits or stablecoins, waiting to see which use cases prove most successful. “Systemic stablecoins,” those widely used in payments and potentially affecting financial stability, will be regulated by the Bank of England; others fall under the Financial Conduct Authority (FCA). FCA Director Matthew Long highlighted ongoing regulatory support for innovation, including a regime for GBP-denominated stablecoins. Despite most stablecoins being USD-based, the U.K. aims to offer a trusted, redeemable GBP option. Mills noted the U.K. is aligned in timing with new U.S. regulations, and regards its stablecoin framework as robust by explicitly treating stablecoins as money.
