According to Foresight News, the Bank of England is set to unveil its stablecoin regulatory framework, which aims to enhance cross-border financial transactions and reduce associated costs. Deputy Governor Sarah Breeden highlighted the potential for stablecoins to accelerate international fund flows and contribute to a diverse currency landscape.
Breeden noted that the regulatory plans are influenced by a landmark bill from the Trump administration, which seeks to normalize stablecoins. Speaking at a conference in London, she emphasized that stablecoins, traditionally confined to the cryptocurrency market, are beginning to enter mainstream financial systems. Their inherent digital nature could facilitate faster and more cost-effective cross-border settlements and support tokenized securities trading.
The Bank of England intends to launch a consultation on the revised stablecoin regulation later this year. This follows industry concerns that the initial regulatory stance was overly stringent, prompting the bank to ease its measures.