The Bank of England, the UK's central bank, has defined stablecoins as a new form of currency and has begun accepting applications for issuance within the year, moving towards their integration into the regulatory system, Decrypt reported. Sasha Mills, Executive Director for Financial Market Infrastructure at the Bank of England, stated, "By the end of this year, we will accept applications from firms wishing to launch systemic stablecoins for widespread use in payments in the UK. We are not prejudging whether deposit tokens or stablecoins are more appropriate. However, stablecoins must possess a level of stability equivalent to existing money." The Bank of England distinguishes between stablecoins used for widespread payments that could affect financial stability and those for other retail and corporate payments, with the latter to be regulated by the Financial Conduct Authority (FCA). UK authorities are also expected to finalize the stablecoin framework by the end of the year.
