The Bank of England will take over collapsed “stablecoin” companies to prevent a cryptocurrency crash hitting financial stability, under Treasury plans.
How do you take over something decentralised?
Stablecoin issuers would be placed into special administration by the Bank to protect consumers if they fail, a Government consultation said on Tuesday.
The proposals would mean companies offering stablecoins, cryptocurrencies designed to hold their value, would fall under similar rules as banks and other systemic institutions.
The Treasury plans to recognise stablecoins as a legal form of payment under efforts to make Britain a “crypto hub”.
Presumably that means oversight – at least – of what they’re invested in. Which will be interesting…..