The Financial Conduct Authority (FCA) and the Bank of England (BoE) have published proposals for stablecoin regulations. In a recent publication made available by the BoE, the financial institutions are requesting feedback on the proposed approach to regulate stablecoins. Stablecoins are digital currencies that track have a stable price linked to a fiat currency such as the USD, the EUR or the GBP.
FCA and BoE Publish Regulation Proposal for Stablecoins
New stablecoin regulations are being analysed by the FCA and the BoE. This is the reason why they have published their approach on how to regulate stablecoins. The proposals cover multiple topics, including payment systems, and what’s their future in the United Kingdom.
Sheldon Mills, the Executive Director of Consumers and Competition at the FCA explained that stablecoins can make payments faster and cheaper for consumers. However, they are requesting feedback from companies and key economic actors on how to address stablecoin regulations.
On that matter, Mr. Mills said:
“Stablecoins have the potential to make payments faster and cheaper for all, and that’s why we want to offer firms the ability to utilise this innovation safely and securely. Getting views from others is essential for creating proportionate rules that benefit consumers and firms and also meet our objectives.”
At the time of writing this article, the largest stablecoin in the market was Tether (USDT). This virtual currency has a price of $1 and it is linked to the USD. Its price does not fluctuate compared to Bitcoin (BTC) or other digital currencies. Tether is now being traded at around $85 billion and is the third largest in the market after BTC and ETH.