The Bank of England has proposed changes to its planned regime for sterling-denominated systemic stablecoins, making the framework more commercially workable for issuers while keeping tight limits on backing assets.
The consultation, published on June 22, sets out a draft Code of Practice for stablecoin issuers recognised as systemic by HM Treasury. Systemic stablecoins, which are expected to be widely used in payments and could pose risks to UK financial stability, will be supervised jointly by the BoE and Financial Conduct Authority.