Bank of England shifts: Open attitude towards wholesale stablecoins calls for the establishment of a hybrid ecosystem

[Coin World] Coin World reported on July 4 that the Bank of England has shown a forward-looking stance on digital innovation this week. Its executive director, Sasha Mills, stated that it holds an "open attitude" towards the use of stablecoins for wholesale payments, contrasting with the report from the bank for international settlements last week that categorized stablecoins as "unreliable currencies." Mills emphasized that financial stability is the top priority, but after legal revisions, the central bank needs to balance innovation, and the regulatory approach will be more balanced.

Policy has undergone a significant shift: The Bank of England has loosened restrictions on the use of stablecoins in wholesale markets for the first time, although it still favors Central Bank currency settlement; in the retail sector, reserve requirements have been relaxed, allowing some investment in high-quality assets, while proposing temporary holding limits for individuals and businesses to prevent deposit outflows. Technically, the Central Bank is developing a synchronized system to achieve DLT transactions settled through the RTGS system. Mills calls for industry collaboration to build a "hybrid ecosystem" and points out the potential of public chains as a connecting layer, emphasizing that London should shift from technical demonstrations to building a new generation of financial systems.

According to news from yesterday, the Governor of the Bank of England warned that stablecoins threaten the public's trust in currency.