The UK is introducing stablecoin regulations by 2026.

New Developments in the UK's Stablecoin Regulatory Policy

According to recent announcements, the Bank of England is planning to launch a comprehensive consultation regarding the regulation of stablecoins on November 10. This consultation aims to adopt a regime similar to U.S. regulations concerning bonds that support digital assets.

The Role of Stablecoins in the Payment World

Stablecoins are a type of cryptocurrency that is pegged to traditional currencies, such as the U.S. dollar or British pound. Expectations that these digital assets will transform the payment world were a major topic of discussion at this week's International Monetary Fund (IMF) and World Bank meetings held in Washington.

Expert Opinions

Financial experts believe that digital currencies could play a significant role in providing faster and lower-cost payments. Currently, dollar-pegged stablecoins dominate the market.

Global Regulatory Implications

The Genius Act, enacted during the Trump administration, sparked global excitement for stablecoins. According to Bank of England (BOE) sources, the U.S. strategy for adopting stablecoins demonstrates that previous approaches were not sustainable. The Financial Stability Board, led by BOE Governor Andrew Bailey, has warned that regulatory arbitrage and potential crisis risks have increased due to inconsistent regulations among countries.