The UK government wants to give the Central Bank more powers to oversee stablecoins following the collapse of the IHR.
According to Bloomberg’s report, the UK government will take additional security measures to ensure financial stability is not harmed. In this context, the government wants to give more power to the central bank.
The UK government has submitted a proposal stating that existing legislation should be changed to overcome the potential risk of failure of another stablecoin.
This proposal includes empowering the country’s central bank to oversee stablecoin issuers.
After the collapse of the IHR, regulators around the world began to seek an action on this issue.
The proposal, which will be reviewed by the British Parliament, will help soften a blow to financial stability following a possible stablecoin collapse.
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