Bank of England Issues Warning on Stablecoin Risks

The Bank of England has issued a warning about the potential dangers posed by the burgeoning stablecoin market in the United Kingdom. In recent discussions held on April 4th and 8th, the Financial Policy Committee (FPC) examined the financial threats associated with the increasing presence of stablecoins within the economy. The FPC identified significant growth in the stablecoin sector, raising concerns about inadequate asset backing and its potential impact on critical financial systems.