The Bank of England Issues a Deadline for UK Banks to Prepare Cryptocurrency Plans

The UK’s Central Bank has inspected local banking institutions and anticipates a response regarding their position on cryptocurrency by June. To sum it up, the Bank of England’s attitude toward digital currencies has been less than friendly. Yet, the BoE outlined the first regulatory framework for cryptocurrency and established some timeframes.

Banks To Lay Out Their Strategies Latest 3rd Of June

The UK’s Central bank has begun drafting the state’s policy structure for cryptocurrencies, as Reuters stated in a recent report. By emphasizing the sector’s current size and its fast expansion, the institution appears eager to establish some basic rules.

Additionally, the BoE has initiated a survey to ascertain local banks’ current virtual currency levels of exposure and future crypto plans, with the 3rd of June as the deadline for responses.

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The conflict between Ukraine and Russia appears to have elevated digital currencies as a possible vehicle of avoiding restrictions, and regulatory bodies have unarguably pushed crypto to the top of their priority list. The BoE, on the other hand, appears to admit that this critical issue is unfounded.

While it is unlikely that cryptocurrencies will provide a viable means of bypassing sanctions on a large scale, the likelihood of such actions is impossible. This highlights the critical essence of ensuring that advancement in digital currencies is followed by efficient policy frameworks that retain greater high standards of ethics in the monetary sector.

Moreover, the report stated that the BoE would take measures to ensure that risks associated with cryptocurrencies are contained till the said regulations are implemented.

The BoE’s Stance On Stablecoins 

There is still more. The Bank of England stated that it expects that stablecoins are supported by liquid assets of good quality, including deficit capital on a par with what banks currently hold.

The Financial Policy Committee (FPC) of the institution stated that “in 2023, the FCA and the BoE will continue to work on stablecoin regulations and consult financial authorities for a regulatory architecture for central stablecoins.”

The statement above appears to be a continuation of remarks made by the governor of the bank in March. Andrew Bailey, commenting on the famed volatility of digital currencies, stated:

“I find it troubling that a nation would adopt it as an official currency. What bothers me the most is if El Salvador’s populace comprehends the scope and instability of their currency.”

When the President of El Salvador announced the adoption of BTC as a currency, the people were not happy about it, but there was no uprising. US Senators have in the past attacked El Salvador’s President for adopting a digital currency as a legal tender while forsaking the dollar.

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