Bank of England Fears Weakened Stablecoin Regulations May Impact UK Financial Stability

The Bank of England (BOE) has expressed concerns about potentially lax stablecoin regulations in the UK, warning that such a move could destabilize financial systems and even trigger a credit crunch. Deputy Governor Sarah Breeden highlighted these risks while discussing the BOE’s consultation paper on stablecoins, which received criticism from industry leaders for being stricter than those in the US.