Bank of England studies imposing limits on payments with stablecoins

The new package of regulations in England could include limits on stablecoin payments

The Bank of England (BoE) is studying a new set of regulations that includes limiting payments made using stablecoins.

According to statements this Monday by the entity’s lieutenant governor, Jon Cunliffe, during the annual Innovate Finance conference, “the need to regulate digital assets amid an accelerated trend towards digitalization in the financial field” has been raised.

In his speech, Cunliffe highlighted the benefits of technological advances in the financial area, but also warned about the need for strict and clear regulations regarding payments in digital currencies and risk reduction.

Referring to blockchain, cryptocurrency, tokenization, and smart contracts, among others, the BoE deputy governor, stablecoins should “meet the same standards that apply to traditional banking entities.”

The proposal to limit payments made with stablecoins comes to the fore amid discussion by the UK Parliament on “the Financial Services and Markets Bill, which will help regulators set rules for cryptocurrencies and incorporate stablecoins into existing payment legislation.”

Cunliffe highlighted the importance of a tokenized banking system, adding: “This will allow both banks and non-banks wishing to develop payment solutions using new technologies to clearly understand what is possible and what is required in the respective regulatory regimes.”


Source: diariobitcoin

(Reference image source: Robert Bye, Unsplash)

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