Bank of England Pushes for Stronger Regulation of Stablecoins as Their Usage Grows

The Bank of England (BoE) is calling for stricter rules on stablecoins as their use expands, particularly for those serving everyday payments in the UK. Governor Andrew Bailey and senior BoE officials argue that widely used stablecoins should be subject to similar regulations as traditional banks, including access to central bank facilities and robust protections for users. To achieve this, the BoE plans to issue a consultation paper outlining a “systemic stablecoin regime” with rules distinguishing between those used for large-scale payments or finance and smaller, less critical applications.