A report by the Financial Times has described UK proposals that would see stablecoins brought into the real economy as valid payment options for good and services.
The proposals from the Bank of England (BoE) and Financial Conduct Authority include BoE taking responsibility for direct supervision of the entities behind the stablecoins. The proposals also call for payment systems utilising digital tokens to be fully backed by central bank deposits. Stablecoin issuers, says the report, will also be required to demonstrate how they intend to manage redemptions, particularly during times of stress.
The FT says the proposals are the latest step in the UK’s bid to establish itself as a hub for digital assets amid concerns that Brexit threatens London’s dominance as Europe’s leading financial centre.