The Bank of England official said stablecoins need usage limits.
Bank of England Deputy Governor Jon Cunliffe said stablecoins need restraints. A statement came from the official while discussions about stablecoins continued.
Bank of England Vice-President Says Stablecoins Need Limits
Bank of England Vice-President Jon Cunliffe pointed out the possibility that rapid innovations in the payments sector could bring new risks to the financial system. In his statement, he suggested that regulators should place limits on the use of stablecoins used for payments.
Cunliffe noted the possibility that rapid innovations in payment systems could introduce new risks to customers and the financial system. The official also stressed the importance of maintaining financial stability. He added that while allowing for innovation, rapid and disruptive changes should not be allowed to threaten financial stability.
Noting that stablecoins carry risks, especially associated with cryptocurrencies, Cunliffe said that regulators should impose restrictions in this area. Speaking at an event organized by Innovate Finance, Cunliffe emphasized that the decisions regarding the use of stablecoins should be made by the regulators.
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