Cointime

Download App
iOS & Android

BoE Considers Limits on Stablecoin Payments as Parliament Debates New Crypto Rules

The Bank of England (BoE) will consider whether to put limits on stablecoins used for payments in new rules for the sector, Deputy Governor Jon Cunliffe said in a speech on Monday.

The BoE and the Financial Conduct Authority plan on consulting on new rules for stablecoins later this year, Cunliffe said. Last May the bank said it will regulate stablecoins that could have an impact on financial stability. Meantime, the Financial Services and Markets Bill, which will help regulators put in place rules for crypto and bring stablecoins under existing payment legislation, is nearing its final stages in Parliament.

The new rules will look to regulate stablecoins like commercial bank money, “including the requirement that the coins should be redeemable from the stablecoin arrangement, in fiat money, at par value and on demand,” Cunliffe said. Stablecoins, however, will not receive protection against failure in the same way that commercial bank deposits do. The Financial Services Compensation Scheme (FSCS) provides deposit insurance of up to 85,000 pounds (US$105,059) for bank customers.

The stablecoin rules will follow principles established by the Bank for International Settlements' Committee on Payments and Market Infrastructure and the International Organization of Securities Commissions last year, Cunliffe said.

(by Sheldon Reback)

Comments

All Comments

Recommended for you

  • Hong Kong plans to submit stablecoin bill as soon as practicable

    Hong Kong's highest financial official stated that the government will "submit a stablecoin bill to the Legislative Council as soon as practicable." A Hong Kong financial official stated that once negotiations make progress, the government will focus on submitting a stablecoin licensing bill. Hong Kong's Financial Affairs and Treasury Bureau Director, Christopher Hui, stated that depending on the consultation results and progress of preparatory work, the government will submit the bill to the Legislative Council as soon as possible.
  • Terra founder Do Kwon to be extradited to U.S.

    Terra founder Do Kwon will be extradited to the United States.
  • Llama Risk Response to FCA Discussion Paper: DP23/4

    We are grateful for the opportunity to provide feedback on the FCA's discussion paper on stablecoins regulation. The response herewith is informed by our extensive risk assessment of USDM, a regulated Real-World Asset (RWA) token backed by short-term U.S. Treasuries, and asset overview of USDY, a tokenized note anchored by U.S. Treasuries and bank deposits. Additionally, our insights are aligned with the recent S&P Stability Assessments of centralized stablecoins, reflecting our commitment to maintaining the highest standards of safety and compliance in this evolving market.
  • Cointime February 3 News Express

    1. Ripple payment service "Ripple Payments" plans to return to the US market and launch targeted solutions
  • Cointime January 14 News Express

    1.Digital asset protocol Metaplex will list its Solana inscription on January 162.Investment bank TD Cowen: The U.S. SEC will not approve an Ethereum spot ETF in the short term3.Binance, Kraken and other nine trading platforms have been removed from Google App Store in India4.Barclays economists advance forecast for Fed rate cut to start from June to March5.The Chairman of the U.S. SEC issued a statement on the theft of the SEC's official Twitter account: The impact is still being evaluated and the company is cooperating with law enforcement agencies for
  • State of TUSD Q4 2023

    TrueUSD (TUSD) is a fully collateralized stablecoin that offers the security of real-world assets combined with the efficiency of blockchain technology. TUSD implements smart contracts for the minting and redemption processes, ensuring real-time onchain verification of the funds backing the coin. This process is reinforced by The Network Firm LLP, a U.S.-based auditing firm specializing in cryptocurrencies, as well as Chainlink's Proof of Reserve, which provides additional transparency and trust in the available reserves.
  • Cointime January 7th News Express

    1.Ordinals’ cumulative fee income exceeds 5,400 BTC
  • Hong Kong launches stablecoin regulation consultation

    At the end of December Hong Kong launched a consultation on legislative proposals related to stablecoin issuers. The consultation is jointly run by the Hong Kong Monetary Authority (HKMA) which will be the stablecoin regulator and the Financial Services and the Treasury Bureau (FSTB). It runs until the end of February. Additionally, the HKMA plans to launch a regulatory sandbox for the same purpose.
  • Cointime December 31st News Express

    1.Linea mainnet has crossed 305,685 ETH
  • Turning Out Wyoming’s Stablecoin Frontier

    Wyoming wants to create its own stablecoin. Over the past five years, Wyoming has earned a reputation as the “Crypto Cowboy State” thanks to numerous crypto-friendly laws passed by its legislature, covering digital assets, banking, decentralized autonomous organizations, and — most recently — the prospect of a state-governed stablecoin, possibly issued as soon as 2024.