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UK lawmakers urge caution on systemic stablecoins and the digital pound
In an evidence session with the Bank of England, Lord Kulveer Ranger said the UK central bank appears attentive to feedback on systemic stablecoins but remains cautious.
Lord Kulveer Ranger, a Member of the UK House of Lords and co-chair of the All-Party Parliamentary Group (APPG) on Digital Markets and Digital Money, said his recent evidence session with the Bank of England left him with two main impressions, the bank is listening and the bank is cautious.
In the opinion piece, Ranger described the Bank’s engagement around its consultation into systemic stablecoins as genuine, saying the regulator is trying to understand how stablecoin innovation is unfolding in real time, while also taking time to get the framework right.
Ranger said stablecoins are no longer theoretical, noting that properly structured stablecoins could enable faster, cheaper, more programmable payments, but improper handling could introduce risks that reach financial stability.
He added that time is not neutral in a global system where capital and confidence move quickly, and he pointed to other jurisdictions making regulatory calls, ranging from more permissive to more restrictive approaches.