U.K. central bank will begin accepting stablecoin issuer applications by year-end, treating them as a distinct form of money.
The Bank of England will classify systemic stablecoins as a new form of money and begin accepting applications from issuers by the end of 2024. The move targets stablecoins widely used in U.K. payments, subjecting them to regulatory oversight comparable to traditional money forms.
Regulators are not favoring stablecoins over tokenized deposits, acknowledging uncertainty over which use case will dominate. The BoE aims to ensure interoperability and robustness across all digital money alternatives, including e-money and tokenized deposits.
The Financial Conduct Authority will collaborate with the BoE to implement the new regime, focusing on stability and user choice in the evolving payments landscape.