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UK lawmaker urges caution as Bank of England weighs stablecoins
An evidence session at the Bank of England focused on how regulators view systemic stablecoins and the digital pound, with UK-backed stablecoins reported at less than $6 million in circulation.
DL News features commentary from Lord Kulveer Ranger, a Member of the UK House of Lords and co-chair of the All-Party Parliamentary Group on Digital Markets and Digital Money.
Ranger says a recent evidence session with the Bank of England offered a clear view of how the central bank regards digital assets, systemic stablecoins, and the digital pound, and he came away with two impressions, the Bank is listening and the Bank is cautious.
In the piece, the lawmaker argues the Bank’s engagement on its consultation into systemic stablecoins is positive, noting that stablecoins can enable faster, cheaper and more programmable payments when properly structured, but can pose financial stability risks if mishandled.
Ranger also warns that the timing of regulatory decisions matters in a global system where capital and expectations move quickly, and he cites that there is less than $6 million in sterling-backed stablecoins on the market.