Stablecoins Governor can help transfer the financial system from commercial lending

Stay in view of the free updates

Simply subscribe to Central banks Myft Digest – it is delivered directly to your inbox.

Andrew Billy said that Stablecoins can constitute a large part of the transformation in the financial system away from dependence on commercial banks of lending, and may soften a position on the governor of Bank of England towards digital assets.

in condition For the Financial Times on Wednesday, Billy said it would be “a mistake to be against Stablecoins as a principle issue”, noting “the leadership of innovation in payment systems at home and cross -border.”

Stablecoins -Or digital symbols that are linked to a fixed rate from individual to one to a real currency, and the cornerstone has been ignited in the trading of cryptocurrencies- Hot discussion Among the organizers. Some have warned that they are a threat to the stability of global financing, while others supported them as a promising innovation that could make payments cheaper and faster.

In his speech at his palace’s house in July, Pelly said he had not seen Stapcins as a substitute for commercial banks’ money. But he wrote on Wednesday that the financial system “should not be organized” as it is now, with strong dependence on commercial banking lending to finance the economy.

“It is possible, at least partially, to separate the money from providing credit, as banks and niches and unknown birds coexist more than the role of providing credit,” Billy said, adding that “it is important to consider the effects of this change comprehensively before moving forward.”

Stablecoins is trading approximately $ 300 billion, dominated by US dollar -based products such as Tether and Circle’s USDC. Citigroup analysts Predispay The market value can reach $ 4TN by 2030.

The Bank of England has been criticized for taking a more conservative approach to Stablecoins than other central banks, especially since The American Congress approved the law of the genius In July, I put the theater for the prevailing accreditation of the symbols in Wall Street.

Former conservative adviser George Osborne, who is now recommended to accommodate the cryptocurrency, to caution Britain “is completely left behind” on Stablecoins, while the UK’s reformist leader Nigel Faraj Billy urged Billy last week To support the development of cryptocurrency.

In his FT article, Billy adopted a more constructive tone, noting that Stablecoins was used as money “enabling comparison and exchanging value and thus supporting the price system.”

However, he warned that Stablecoins had “a number of features that require scrutiny”, including whether the assets supported should be completely free of risk in order to make them “really … stable”.

Billy said that the threat of cyber attacks and other operational risks means that the STABLECOIN exporters will need an insurance plan for the owners of money in a crisis and a decision framework to ensure “their holders prefer creditors in any insolvency.” Both are likely to add the costs of the two exporters.

Billy added that the terms of exchange for Stablecoins “must be the same for all its holders and must be directly to other forms of money, and do not depend on the so -called exchange exchange and the conditions of its work.” “It was also prepared at the present time, not all stablecoins in this condition.”

The Bank of England is scheduled to publish an advice on its plans to organize Stablecoins in the UK importantly important later this year.

The central bank is already It is urged To give up its plan to reduce the number of Stablecoins that people can possess to between 10,000 to 20,000 pounds for individuals and 10 milliliters of pounds for companies, giving the UK tougher bases from the United States or the European Union.