The Financial Policy Committee of the Bank of England (FPC) said in its record of April 2025 that, although Stablecoins continue to grow in scale and relevance, poor supervision and inappropriate assets support can be new risks for the financial stability of the UK, especially in times of stress.
The Commission again confirmed that the BOE and the Financial Conduct Authority (FCA) are actively developing regulations for systemic and non-systemic stablecoins to ensure that these tokens can fully satisfy and retain parity, even in volatile market conditions.
Concern about the quality of assets and foreign denomination
A central care that is discussed by the FPC is the quality of assets that support Stablecoins, in particular by Sterling-nominated tokens issued offshore.
According to the committee, if these coins are supported by illiquid or risky assets, or if the risks related to those assets are not properly managed, they can initiate fire sales during market tax periods. Such spillovers can influence the financial markets in the UK.
The FPC also emphasized the growing use of stablecoins that are sealed in foreign currencies, such as tokens supported by the US dollar, warning that they can lead to “currencyavang” in domestic economies.
Although the adoption is limited for the time being, the Commission noted that a greater use of the household and SMEB of foreign Stablecoins for cross-border retail payments can increase macro-financial vulnerabilities.
On the wholesale side, the committee warned that the settlement of transactions outside the central bank money could increase the credit risk of the counterparty, the ability of central banks to manage liquidity and to manage, reduce the volatility of stress during stress events.
Regime -Coordination and Monitoring
The UK agrees with a growing list of jurisdictions, including the US, which develop tailor -made Stablecoin regulations. The FPC said that global efforts supports standards, referring to the recommendations of the Financial Stability Board (FSB) about regulating cryptomarkets and stablecoins.
The central bank will continue to follow the size, use and mutual connection of the Stablecoin sector with the broader financial system, which has remained “relatively limited” but is expected to grow.
Although the Commission did not indicate an immediate threat to Stablecoins, it emphasized the importance of proactive regulatory action to limit future risks such as adoption.
The following steps of the FPC will be aimed at ensuring that Stablecoins, in particular those who are used in payments, can work safely without undermining the monetary sovereignty or financial resilience.