March 28, 2024

Bank of England employee: “stablecoins should be regulated like regular payment systems”

Bank of England Chief Financial Officer Christina Segal-Knowles said that stablecoinsmust be regulated by the same standards as existing payment systems.

Seagal Knowles said that without dueregulating stablecoins, the UK financial system will be completely destabilized. She explained her position by the fact that stable cryptocurrencies will operate beyond the existing financial infrastructure, which is interconnected with card payments and other online banking services, since all these actions are regulated and tested.

A Bank of England employee gave an example —Let's say a person decides to use a completely new payment method — pay for your purchase with stablecoin via phone. It turns out that this payment will not be associated with his credit or debit card, in this case the buyer does not have any guarantees that are usually provided to him in existing payment systems. Segal-Knowles added that poorly developed and unregulated payment systems pose huge risks to the economy, which in turn can “shatter” the financial system.

“Even if stablecoins are used formaking payments, they should be regulated by the same rules as traditional payment systems and comply with similar standards, regardless of the technology used,” — said Christina Segal-Knowles.

Last October, the Central BankThe UK has released a number of requirements and principles that the Libra coin must meet in order to operate in the country. Additionally, this month, Bank of England senior adviser Huw van Steenis said he sees no future for cryptocurrencies in the world of finance.

</p></p>