The Bank of England is considering whether stablecoins require deposit insurance frameworks similar to traditional bank savings. Officials suggest that to protect users and maintain financial stability, stablecoin reserves might need regulatory backing equivalent to the guarantees offered on conventional deposits. This approach reflects growing recognition that stablecoins are becoming integral to the financial system, necessitating comparable safeguards. Such measures could reshape how digital assets are regulated across traditional finance.
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The Bank of England is considering whether stablecoins require deposit insurance frameworks similar to traditional bank savings. Officials suggest that to protect users and maintain financial stability, stablecoin reserves might need regulatory backing equivalent to the guarantees offered on conventional deposits. This approach reflects growing recognition that stablecoins are becoming integral to the financial system, necessitating comparable safeguards. Such measures could reshape how digital assets are regulated across traditional finance.