The UK Treasury Proposed to Implement Measures for Protection Against the Collapse of Stablecoins
The UK Treasury submitted a document for public discussion that proposes the introduction of additional measures to protect the country’s financial stability from a possible collapse of stablecoins.
The agency recommended delegating authority to the Bank of England to address a potential systemic disruption to stablecoin issuers, digital wallet providers and third-party payment processors.
According to the document, this allows the Central Bank to fulfil its statutory role in relation to financial stability.
In addition, the Treasury insists on the need to ensure “the effective application of existing legal frameworks for risk management” in the event of a digital asset issuer going bankrupt.
The discussion of the document will last until August 2, after which it will be considered in parliament.