Bank of England’s Breeden warns watered-down stablecoin rules risk stability

Bank of England deputy governor Sarah Breeden has backed the central bank’s proposed rules for stablecoins, some of which the local crypto industry had criticized.

Weaker stablecoin rules in the UK could risk financial stability and trigger a credit crunch, according to the Bank of England’s deputy governor, Sarah Breeden.

“We have a different set of risks to manage as we transition to bringing in this new form of money,” Breeden’s told Reuters on Tuesday. Last week, she said that the UK can keep pace with the US on stablecoin regulation.

Crypto industry leaders have criticized the BOE’s stablecoin consultation paper released on Monday, which proposed a relatively strict stance on stablecoin regulation in comparison to the US.

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