Bank of England: Views stablecoins as “a new type of money”; will open applications for systemic stablecoins this year

According to Decrypt, the Bank of England has stated that it views stablecoins as “a new type of money” and plans to open applications for issuing “systemic stablecoins” in the UK by the end of this year. Sasha Mills, Executive Director at the Bank of England, said regulators are “remaining neutral” in the debate between tokenized deposits and stablecoins, and it remains unclear which type of new money is better suited to specific use cases. The Bank of England will oversee systemic stablecoins—those widely used for payments and potentially capable of affecting UK financial stability—while stablecoins with limited usage in retail or corporate payments will be regulated by the UK’s Financial Conduct Authority (FCA).