Bank of England Pushes Stablecoin Rules as Europe’s Crypto Market Expands
Bank of England Deputy Governor Sarah Breeden said the UK is heading toward a “multi-money” system where central bank money, tokenised deposits, and stablecoins coexist.
at Warwick Business School on Wednesday, she said these forms of money must be “freely platformable” to ensure quicker and cheaper payments without undermining trust.
“Stablecoins, for a long time the preserve of crypto markets, are beginning to go mainstream,” Breeden said. “Their secure adoption could unlock efficiencies in cross-border payments as well as support trading of tokenised securities.”
Payments Upgrade and Regulatory Priorities
Breeden stressed the importance of regulatory frameworks that balance innovation with risk management.
She pointed to the Bank’s Digital Securities Sandbox, run with the , as a live environment to test tokenised transactions securely. “We have to be, and we are, open to learning as we go,” she added.
The UK’s 2023 legislation created the basis for a stablecoin regime, with revised proposals expected later this year. These could allow systemic issuers to hold part of their reserves in short-dated government securities, a change Breeden said reflects industry feedback while keeping stablecoins secure.
Her comments come as the U.S., under President Trump’s administration, moves ahead with the GENIUS Act, legislation that sets federal standards for stablecoin issuers.
Although, the U.S. approach leans on statutory clarity, the Bank of England is anchoring its push in infrastructure upgrades, including a new Real-Time Gross Settlement (RTGS) system and a synchronisation lab to support on-chain settlement.
Breeden said central bank money will remain vital in systemically significant markets, but tokenised deposits and stablecoins are set to play a growing role in settlement, provided regulatory secureguards keep pace.
Crypto Market Activity Builds Across Europe
Crypto activity is accelerating across Europe, even as regulators step up scrutiny.
European Central Bank (ECB) President , urging stricter rules in line with the bloc’s Markets in Crypto-Assets Regulation (MiCA). She warned of the risk of a run on stablecoins and raised concerns about Europe’s ability to meet demand.
At the identical time, crypto firms are expanding across the continent. Japanese platform , while global platform for European users.
