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Bank of England Sounds Alarm on Stablecoin Oversight Issues
Bank of England Sounds Alarm on Stablecoin Oversight Issues
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The Bank of England’s Financial Policy Committee (FPC) has raised concerns about the growing scale and relevance of stablecoins, warning that poor oversight and inappropriate asset backing could pose risks to UK financial stability. The FPC reaffirmed that the BoE and the Financial Conduct Authority (FCA) are developing regulatory regimes for systemic and non-systemic stablecoins to ensure reliability and parity in volatile market conditions. A central concern is the quality of assets backing sterling-denominated tokens issued offshore, which could pose risks if backed by illiquid or risky assets.
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