The Governor of Bank of England Andrew Billy emphasized the need for strict regulations on Stablecoins, and to distinguish them from Bitcoin and other cryptocurrencies. Speaking to the College of Business at the University of Chicago Both in London, Billy addressed the advanced scene of financial markets and the role of digital assets.
The President of the Bank of England urges Stablecoin more strict
Andrew Billy, the governor of the Bank of England, I mentioned Stablecoins require strict regulatory measures because of its role in payments. He described them as financial tools that perform some money functions, but also share the characteristics of joint investment funds. Pelly stressed that Stablecoins need a clear framework to meet high regulatory standards.
Moreover, Billy shed light on the difference between Stablecoins and Bitcoin, noting that Bitcoin operates outside the banking system and remains one of the speculative assets. He explained that Bitcoin is not a form of money but rather a highly dangerous investment option.
However, I acknowledged that investors may keep them as part of a variety of wallets, provided that they understand the risks.
However, Andrew expressed uncertainty about the Trump administration received Encryption. A comparison between the development of the previous Biden administration, the Governor of the Bank of England commented,
“I think the Biden administration, my impression in particular, is the Supreme Council for Education, has entered into a situation that was unable to obtain a regulatory framework and was used by procedures through the courts. This was more challenging, frankly. Therefore, there is a gap in terms of a fixed organizational framework, but we are We do not know what it will be.
Digital pound on the horizon?
In addition, the Bank of England still establishes the entry of a central bank of the Central Bank (CBDC) in cooperation with the UK government. Billy stated that the discussions are continuing with regard to the potential benefits of the digital pound in the financial system.
The ruler compared the situation to doubt on early smartphones, while emphasizing the need to explore the advantages of digital payment innovations. The Bank of England is studying whether the digital pound is necessary or that the current commercial bank payment systems can provide similar benefits.
These developments come at a time when the Federal Reserve Chairman Jerome Powell emphasized again the central bank’s commitment Ending Debanking practices. Powell pointed out that the Federal Reserve is planning to review its internal implementation booklet, which removes a section that is considered the activities of “controversial” bank leaders in performance reviews.
Bitcoin organizational approach and stablecoins
At one time. Billy explained that Bitcoin and the nails require distinct organizational curricula. Bitcoin, according to him, is one of the speculative assets that does not work as money, while Stablecoins has a direct contact with payment systems and requires closer supervision.
He also indicated that Stablecoins, despite its support by assets, lacks full transparency. Due to its potential use in financial transactions, the Bank of England intends to impose strict regulatory measures to ensure consumer protection.
More importantly, the Bank of England is preparing to launch a “digital laboratory” as part of its ongoing research in the Convention on Biological Diversity. This initiative will contribute to the stage of the design and evaluation of the digital pound.
Meanwhile, the US -led Hesseter Peres The encryption team has identified Its main goals on a newly launched web page, aimed at providing clearer organizational guidelines. The work team will distinguish securities from non -salary, create practical frameworks, and create viable registration paths for encryption companies.
Ronnie Mogndi
Ronny Mugendi is a four -year experienced encryption journalist, as he contributed greatly to the various media in cryptocurrencies and technologies. With more than 4000 articles published through various media, it aims to inform and teach more people to the Blockchain world and Defi. Outside his career in the press, Rooney has a bicycle riding and exploring new paths and landscapes.
Responsibility: Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.
partner: