In a speech yesterday, Sir Jon Cunliffe, Deputy Governor of the Bank of England, outlined the Bank’s approach to tokenized money in various forms, including stablecoins, deposit tokens and central bank digital currency (CBDC), mainly wholesale.
The Financial Services Markets Bill will provide the Bank with the powers to regulate payment systems and providers that use ‘digital settlement assets’. Hence, the Bank’s Prudential Regulation Authority (PRA) is working on stablecoin rules.
“It is important that as we develop the regime for payment stablecoins, we also develop the approach for tokenised bank deposits,” said Cunliffe. “The PRA intends to set out its approach in this area alongside the Bank’s consultation on the payment stablecoin regime.”
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