Key takeout
- Bank of England Governor Andrew Bailey said that lending models can change the way the financial system works.
- Stablecoins may reduce traditional banks' reliance on deposit-based lending.
Bank of England Governor Andrew Bailey today proposed that Stubcoin, a digital asset stubcoin, which is a pegged to Fiat currency, could change the financial system by disrupting traditional commercial lending models.
Bailey showed that stubcoin could reduce banks' reliance on traditional deposit-based lending practices and restructure the way financial institutions operate.
The Bank of England has proposed a cap on holding personal and business stability to address the risks from sudden deposit outflows and to ensure financial stability that accelerates recruitment.
While the central bank's lieutenant governor has publicly supported Stubcoins to enable faster cross-border payments, UK regulators see them as competitive challenges against traditional banking services.
The regulatory approach reflects broader concerns about how quickly we can adopt established lending practices that form the backbone of ridiculous banking.
