BoE’s Deputy Governor says stablecoins from foreign jurisdictions could be risky for UK consumers
BoE Deputy Governor Sarah Breeden warned that foreign-issued stablecoins pose risks to UK consumers, necessitating clearer guidance.Summary
Bank of England Deputy Governor Sarah Breeden stressed the necessity for clearer guidance regarding the safety of stablecoins, particularly those issued in foreign jurisdictions like El Salvador, where major issuers are based. Breeden noted that most tokens are currently used for crypto trading, with sterling-denominated coins representing a small market share, and emphasized that more work is required for UK users to identify safe coins. Regarding the BoE's proposal to temporarily limit stablecoin holdings to £20,000 per individual to mitigate banking stress, she stated that banks will eventually need to adapt wholesale funding structures if stablecoins become widely adopted. Breeden concluded by asserting that the UK faces a distinct set of risks compared to the US, where crypto adoption is more prevalent.
(Source：Crypto Briefing)