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Bank of England urged to balance innovation and systemic-stablecoin risks
The opinion piece says there is less than $6 million in sterling-backed stablecoins and warns that regulatory pace can affect global competitiveness.
In an opinion published by DL News, UK House of Lords member Lord Kulveer Ranger said a recent evidence session with the Bank of England offered a “candid readout” of how the UK monetary authority views digital assets, systemic stablecoins, and the digital pound.
Ranger said his main takeaways were that the Bank is listening to feedback and remains cautious, particularly around the Bank’s consultation into systemic stablecoins, which he frames as a real, not theoretical, part of the payments landscape.
He argued that properly structured stablecoins could support faster and cheaper, more programmable payments, while improperly handled versions could introduce risks that affect core financial stability.
Ranger also warned that time is not neutral in a global system where capital and confidence move quickly, adding that he believes there is less than $6 million in sterling-backed stablecoins on the market.