The Bank of England is contemplating the introduction of a guarantee mechanism for stablecoin deposits akin to the existing protections for bank deposits, according to Deputy Governor Dave Ramsden. Ramsden highlighted the need to maintain public confidence in stablecoins, especially if a systemically important stablecoin were to collapse. He suggested that long-term trust might necessitate a deposit insurance scheme and priority creditor status for stablecoin holders in bankruptcy proceedings. The central bank aims to implement regulatory rules for stablecoins by the end of the year, as it has already increased the cap on term cash deposits for British citizens to £120,000 to safeguard against bank failures.