Governor of the Bank of England has charged the G20 countries to work together and come up with stablecoins regulatory consensus that would check its activities in the market
Giving his speech at an event that was held in Brookings Institution, Andrew Bailey said the G20 countries need to work together to achieve the common aim of coming up with stablecoins regulatory consensus and Central Bank digital currency.
Stablecoins are the present talk of the town as it has been in the news owing to the rapid rise that has been enjoyed by the growth of DeFi in the past few months. Over the months, the DeFi sector witnessed nothing less than a $100 million increase every day. The stablecoins has been the best source of liquidity in the digital assets market.
A standard needs to be achieved, Bank of England Governor says
In his speech, Andrew Bailey said that the governments of the G20 nations need to come together to draw up a regulatory framework that would keep the affairs of stablecoins in order.
If any country decided to use stablecoins as a means of payment, then the stablecoins regulation would follow the regulations that other payment systems follow.
Furthermore, the Governor stressed the fact that the loopholes in the current regulations need to be fixed while making it up to date with regulatory standards of innovations.
Stablecoins regulatory consensus would check illegal activities in the market
Even though the Governor supported the activities of stablecoins, he said that he was against decentralized digital assets like Bitcoin and the likes. He said the reason he is against Bitcoin is that the value holds no certainty and he feels they are unsuited to make payments.
This is not the first time that a high ranking official has shown displeasure in the activities of Bitcoin and others. Experts say that Central Banks are against decentralized assets because they challenge the autonomy it possesses. If the stablecoins regulatory consensus is finally drawn up, it would check fraud and other illegal activities in the crypto sector.