Bank of England Deputy Governor Sarah Braden said that as the Bank of England is preparing to announce a stablecoin regulation plan, stablecoins are expected to speed up cross-border capital flows and reduce related costs. Braden said on Wednesday that she expects a “multi-currency” world that includes stablecoins to gradually take shape. She pointed out that the Bank of England's regulatory plans are being affected by the Trump administration's landmark bill, which aims to “normalize” stablecoins. Braden said at a conference in London: “Stablecoins, which have long been limited to the cryptocurrency market, are beginning to go 'mainstream'. Since stablecoins are already an existing form of 'native digital form' currency, their secure application is expected to unlock faster and lower cost settlement methods for cross-border transactions, while also supporting tokenized securities transactions.” The Bank of England plans to launch consultations on a revised stablecoin regulation plan later this year. Earlier, industry sources warned that the Bank of England's initial regulatory stance was too strict, and the bank is currently relaxing related measures. Earlier this year, Bank of England Governor Andrew Bailey warned that stablecoins may weaken the public's trust in currencies; and Braden's statement this time means that the Bank of England's attitude towards stablecoins has changed to a more positive one. The original design of stablecoins was to maintain a stable value, which is in stark contrast to the sharp price fluctuations of other cryptocurrencies such as Bitcoin. Normally, stablecoins are tied to a certain fiat currency. Braden reiterated that for systemically important stablecoins, the Bank of England's revised regulatory framework will allow some of its reserve assets to generate interest. She said, “My vision for the UK payments sector is to build a 'multi-currency' hybrid ecosystem — different forms of money do their part to maximize utility for UK businesses and households.” Braden mentioned that British officials are “closely watching” the US legislative process on stablecoins. “We want US regulation to spawn safe stablecoins,” she said. “Dollar stablecoins will have a global impact.” “Establishing a regulatory framework to support the issuance of sterling stablecoins is absolutely critical,” she added.

Bank of England Deputy Governor Sarah Braden said that as the Bank of England is preparing to announce a stablecoin regulation plan, stablecoins are expected to speed up cross-border capital flows and reduce related costs. Braden said on Wednesday that she expects a “multi-currency” world that includes stablecoins to gradually take shape. She pointed out that the Bank of England's regulatory plans are being affected by the Trump administration's landmark bill, which aims to “normalize” stablecoins. Braden said at a conference in London: “Stablecoins, which have long been limited to the cryptocurrency market, are beginning to go 'mainstream'. Since stablecoins are already an existing form of 'native digital form' currency, their secure application is expected to unlock faster and lower cost settlement methods for cross-border transactions, while also supporting tokenized securities transactions.” The Bank of England plans to launch consultations on a revised stablecoin regulation plan later this year. Earlier, industry sources warned that the Bank of England's initial regulatory stance was too strict, and the bank is currently relaxing related measures. Earlier this year, Bank of England Governor Andrew Bailey warned that stablecoins may weaken the public's trust in currencies; and Braden's statement this time means that the Bank of England's attitude towards stablecoins has changed to a more positive one. The original design of stablecoins was to maintain a stable value, which is in stark contrast to the sharp price fluctuations of other cryptocurrencies such as Bitcoin. Normally, stablecoins are tied to a certain fiat currency. Braden reiterated that for systemically important stablecoins, the Bank of England's revised regulatory framework will allow some of its reserve assets to generate interest. She said, “My vision for the UK payments sector is to build a 'multi-currency' hybrid ecosystem — different forms of money do their part to maximize utility for UK businesses and households.” Braden mentioned that British officials are “closely watching” the US legislative process on stablecoins. “We want US regulation to spawn safe stablecoins,” she said. “Dollar stablecoins will have a global impact.” “Establishing a regulatory framework to support the issuance of sterling stablecoins is absolutely critical,” she added.