Stablecoins, Shaken Not Stirred: BoE’s ‘Multi-Money’ Fantasy Unveiled 🎩💰

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Ah, the Bank of England (BoE), that venerable institution where tradition meets… well, tokenization. Its Deputy Governor for Financial Stability, the illustrious Sarah Breeden, has graced us with her vision of a “multi-money” system. Picture it: stablecoins rubbing shoulders with traditional assets in a harmonious ballet of financial innovation-all ahead of the much-anticipated consultation on crypto policy proposals. A plot twist even Nabokov would applaud! 🕺💃

BoE Dreams of Stablecoins and Pavements? 🚧

On a crisp Wednesday, Breeden took to a London conference stage to declare that central banks must sprint alongside global technological advancements-or risk being left behind like a forgotten umbrella at a train station. She painted a picture of a utopian monetary system: commercial bank deposits, stablecoins, and good old central bank money mingling freely, thanks to technology that promises faster, cheaper, and more innovative payments. All this, she assured, underpinned by trust in money itself. Trust! That elusive currency we all pretend to have but secretly doubt. 🤔💸

To achieve this dazzling feat, the BoE must don its superhero cape and provide infrastructure, regulation, and strategy-because apparently, fostering innovation while maintaining financial stability is as tricky as juggling Fabergé eggs. Breeden admitted, with a dash of refreshing candor, that designing regulatory regimes in our fast-paced world is no walk in Hyde Park. Officials, she quipped, must be willing to “learn as we go.” Ah, the art of improvisation-a skill every bureaucrat secretly dreams of mastering. 📚🎭

And oh, the drama doesn’t stop there! According to Bloomberg, Breeden confessed that UK officials are keeping a keen eye on US regulations post-GENIUS Act. “US dollar stablecoins will influence the world,” she declared, perhaps while gazing wistfully at the horizon. But fear not, Britannia! She insists it’s “absolutely essential” to nurture sterling stablecoins. After all, who wouldn’t want faster, cheaper cross-border transactions and tokenized securities trading? It’s almost enough to make one believe in fairy tales. ✨🌍

Crypto Consultation: The Sequel (Coming Q4!) 🎬

In her speech, Breeden reminded us that the UK laid the groundwork for stablecoin regulation back in 2023. The BoE and the ever-diligent Financial Conduct Authority (FCA) have been cozying up to the industry, drafting rules like diligent elves preparing for Christmas. Meanwhile, the FCA is busy crafting a comprehensive framework for digital assets, teasing us with Discussion Papers and roadmaps. How thrilling! 🎅📖

The HM Treasury has also joined the party, publishing drafts of proposed provisions for cryptocurrencies. Transparency, consumer protection, operational resilience-the usual suspects. Yet, amidst this flurry of activity, former Chancellor George Osborne emerged as the unexpected critic, accusing the government of lagging behind. He lamented that requiring sterling stablecoins to be backed solely by central bank reserves might doom the UK to irrelevance. Ouch. Talk about throwing shade. 🌑💔

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2025-09-05 12:14