Stablecoins not that radical, says Bank of England official | Keisuke Inu - Your Future Economy

Stablecoins not that radical, says Bank of England official

08/07/2021 01:41:25

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The Bank of England’s executive director of the Financial Market Infrastructure Directorate says that stablecoins are hardly “launching us off into some brave new world.”

There has been much commotion about stablecoins among central bankers, regulators and lawmakers in recent years, most notably in the furor surrounding Facebook’s repeated attempts to launch variously designed stablecoins that would be native to its multiple social media platforms.

Not everyone in the financial world is that perturbed though. A new speech for the Westminster eForum Policy Conference by Christina Segal-Knowles, executive director of the Bank of England’s Financial Market Infrastructure Directorate, is titled “What’s Old is New Again” and aims to tone down some of the excitement and agitation surrounding the issue.

Restricting her focus to stablecoins that are designed to be used for payments, Segal-Knowles argues that financial regulators know perfectly well what’s required to ensure that private money is secure and stable enough for public use: