A pedestrian walks past the Bank of England in the City of London, Britain, September 25, 2023.
REUTERS/Hollie Adams/File Photo Acquire Licensing RightsCompanies Bank of England FollowLONDON, Nov 6 (Reuters) - The Bank of England told lenders on Monday that they must avoid any risk that customers might confuse new forms of e-money like 'stablecoins' with standard deposits which are guaranteed against bank failures.
Stablecoins are a cryptocurrency backed by a traditional currency such as sterling or the U.S. dollar, or an asset.
To the extent that systemic payment systems using stablecoins pose similar risks as other systemic payment systems, they should be subject to equivalent regulatory standards, the BoE said.
There are no systemic sterling stablecoins, but Tether, issuer of the world's largest stablecoin, pegged to the U.S. dollar and backed by assets including U.S. government debt, said last year it would launch a sterling stablecoin.
Persons:
Hollie Adams, BoE, stablecoins, Sheldon Mills, David Milliken, Tom Wilson, Kylie MacLellan, Kirsten Donovan, Bernadette Baum
Organizations:
Bank of England, City of, REUTERS, Companies Bank of England, U.S ., Financial, European, Thomson
Locations:
City, City of London, Britain