BoE wants stablecoins fully backed with central bank deposits

Systemic stablecoins would have to back issuance with unremunerated deposits

Bank of England
Bank of England
Photo: Juno Snowdon Photography

The Bank of England wants systemically important stablecoin firms operating in the UK to fully back their issuance with non-interest bearing central bank deposits.

The BoE’s regulatory proposals, published today (November 6), said “any form of money” must be “used with confidence” to make payments and maintain its value at all times.

“Stablecoins can enhance digital retail payments in the UK,” said Sarah Breeden, deputy governor for financial stability. “With this comes the need to make sure

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