Bank of England Deputy Governor Sarah Breeden announced that the UK is developing a 'multi-currency' system, integrating traditional and tokenized commercial bank deposits, stablecoins, and central bank money. Speaking at a conference co-hosted by the Bank of England and the University of Warwick, Breeden emphasized the importance of interoperability in this system.
Breeden stated that while central bank money should remain the foundation for systemic transaction settlements, stablecoins and tokenized deposits will play significant roles in broader contexts. She called for technological and regulatory standards to enable seamless exchange between different currency forms, aiming to prevent the creation of payment 'walled gardens' and to ensure financial stability and public trust in the currency system.
Bank of England's Breeden Advocates for a 'Multi-Currency' System
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