Member

The Bank of England’s proposals for a backstop facility would allow systemic stablecoin issuers to monetise their sterling-denominated UK government debt securities in exceptional scenarios where they might not otherwise be able to do so, helping to mitigate potential financial stability risks. The Bank has also indicated that access to any such backstop lending facility would only be for eligible, solvent and viable systemic stablecoin issuers. The Government are working closely with the Bank of England to ensure that the regime for systemic stablecoin considers a wide range of factors, including value for money for taxpayers, maintaining financial stability and the UK’s international competitiveness.