According to Ledger Insights, the Bank of England expressed a forward-looking stance on digital innovation this week, with its executive director Sasha Mills stating an "open attitude" towards the use of stablecoins for wholesale payments, in contrast to last week's report by the Bank for International Settlements listing stablecoins as "unreliable currencies". Mills emphasized that financial stability is the top priority, but after the legal revision, the central bank needs to balance innovation and regulatory methods.
There is a significant shift in policy: the Bank of England has for the first time relaxed its use of stablecoins in the wholesale market, but still favors central bank monetary settlement; The retail sector has relaxed reserve requirements, allowing some investments in high-quality assets, while setting up temporary holding limits for individuals and enterprises to prevent deposit loss. Technically, the central bank is developing a synchronization system to enable DLT transactions to be settled through the RTGS system. Mills calls for industry collaboration to build a 'hybrid ecosystem' and highlights the potential of public chains as a connecting layer, emphasizing that London needs to shift from technology demonstrations to building a new generation of financial systems.
Earlier yesterday, the Governor of the Bank of England warned that stablecoins pose a threat to public trust in currency.
