During a UK House of Lords Financial Services Regulatory Committee hearing, experts expressed skepticism about stablecoins' potential as future currencies. Chris Giles, an economics commentator for the Financial Times, highlighted the lack of a clear legal and regulatory framework in the UK as a barrier to stablecoin adoption. He described stablecoins as primarily serving as a gateway for cryptocurrency transactions rather than a transformative currency.
Experts at the hearing stressed the importance of stringent regulation, aligning with the Bank of England's approach to treat stablecoins like currencies. This includes implementing strict asset-backed rules, resolution plans, and liquidity support. Giles also cautioned about the potential misuse of stablecoins for illicit activities, advocating for stronger international regulation and enhanced KYC/AML checks if their use expands.
UK House of Lords Hearing Questions Stablecoins' Future as Currencies
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
