Stablecoin Industry Opposes Bank of England’s Unhosted Wallet Ban
Tech Stablecoin Industry Opposes Bank of Englands Unhosted Wallet Ban As the UK considers options to attract and develop the crypto industry at home, the Bank of England (BOE) has put forward several proposals for how it might regulate stablecoins to mitigate perceived financial risks. These have included a ban on custodial wallets for stablecoin holdings. The UK crypto industry, from stablecoin issuers to Bitcoin hardliners, has predictably taken issue with the ban. “This would be a serious misstep for the UK, risking long-term damage that is hard to unwind,” said Benoit Marzouk, CEO of stablecoin issuer tGBP told Cointelegraph. Ban could hamper operability and competitiveness At the heart of the BOEs approach to stablecoins, which it recently discussed in a series of inquiries before the House of Lords, is protecting the UK banking system. The bank argues that unhindered access to stablecoins, which can offer higher yields than traditional banking products, could lead to a run on deposits, and therefore on credit availability from UK banks. In March, Bank of England Deputy Governor Sarah Breeden the House of Lords Financial Services Regulation Committee that BOE is “open to other ways of achieving the objective” of credit availability. “But I think you would expect us as the financial stability