Bank of England ‘open’ to stablecoins for wholesale payments

Odaily News The Bank of England took a forward-looking stance on digital innovation this week, with its executive director Sasha Mills saying it was open to the use of stablecoins for wholesale payments, in contrast to a report by the Bank for International Settlements last week that classified stablecoins as unreliable currencies. Mills stressed that financial stability is the top priority, but the central bank needs to take innovation into account after the law is revised, and the regulatory approach will be more balanced. There has been a major policy shift: for the first time, the Bank of England has loosened restrictions on the use of stablecoins in the wholesale market, but still prefers central bank currency settlement; it has relaxed reserve requirements in the retail sector, allowing some investment in high-quality assets, and at the same time plans to set temporary holding limits for individuals and companies to prevent deposit losses. Earlier yesterday, the Governor of the Bank of England warned that stablecoins threaten the publics trust in currency. (Ledger Insights)