'Watershed moment' as BoE softens stance on stablecoin

THE Bank of England has relaxed its stance on stablecoin - digital currencies that attempt to maintain a stable value.

- By Samuel Norman

A consultation paper aims to help Britain grab a slice of the £200bn market.

The Bank has previously faced calls to “publicly walk back’ on its position on digital assets over fears that the UK was missing out on the market.

But in recent months Governor Andrew Bailey has softened his stance on the sector, in what has been seen as a major U-turn.

Previously, stablecoin - which are less volatile than cryptocurrencies - were dependent on an issuers’ 1:1 backing rule, meaning every coin must be backed by a pound of assets and an ability to keep a portion of those assets as cash for immediate redemption.