Why the Bank of England wants to regulate “stablecoins”

No question of letting companies that offer “stablecoins”, these cryptocurrencies pegged to traditional currencies and whose issuers claim to have enough reserves to be able to maintain a fixed price, benefit from looser rules than banks. In a report that sounds the clearest charge ever launched across the Channel in favor of cryptocurrency regulation, the Bank of England was very clear on Monday.

For the central bank, future issuers will have to have sufficient reserves to put in front of the “stablecoins” in circulation to be able, if necessary, to reimburse their holders in hard currency. “Stablecoins used as a means of payment should meet the same standards as private money in banks, that is, bank deposits,” the Bank of England warned. “They should not be based on promises that cannot be kept over time,” she added. A consultation was opened on the subject, with a call for comments by early September.

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