The Bank of England Has Set A Deadline For Banks To Outline Their Crypto Plans.

The Bank of England has surveyed local financial institutions and anticipates receiving their view on cryptocurrency by June of this year.

To say the least, the Bank of England’s stance on cryptocurrencies has been unfavorable. Regardless, the central bank outlined the first regulatory approach to cryptocurrency and set certain timeframes.

According to a recent Reuters article, the Bank of England has begun laying out the country’s regulatory framework for cryptocurrencies. The organization is ready to create some ground rules, despite the fact that the industry is now relatively tiny but growing rapidly.

The BoE has also started a survey to learn about local banks’ present cryptocurrency exposures and potential cryptocurrency ambitions, with a response deadline of June 3rd.

While cryptoassets are unlikely to provide a feasible way to circumvent sanctions at scale, the possibility of such behaviour underscores the importance of ensuring innovation in cryptoassets is accompanied bye ffective public policy frameworks to […] maintain broader trust and integrity in the financial system.

According to the report, the BoE will focus on ensuring that risks associated with cryptocurrencies are under control until the aforementioned regulatory framework is implemented.

The Bank of England also stated that it expects stablecoins to be backed by high-quality and liquid assets, such as loss-absorbing capital similar to what banks already hold.

The Financial Policy Committee (FPC) of the institution stated that “the BoE and the FCA will carry out additional work on rules for stablecoins and consult on a regulatory model for systemic stablecoins in 2023.”

The preceding appears to be a continuation of remarks made by the bank’s governor earlier in March. Andrew Bailey commented on the famed volatility of cryptocurrencies, saying:

“It concerns me that a country would choose it as its national currency. What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility of the currency they have.”

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