Bank of England and Federal Reserve Officials Diverge on Stablecoins' Future on Sunday

According to Reuters, Bank of England policymaker Megan Greene and US Federal Reserve policymaker Christopher Waller publicly split on Sunday over the future of stablecoins while sharing a panel in Dubrovnik, Croatia. Greene predicted that tokenized deposits will displace stablecoins, stating "I think tokenised deposits are probably going to take over from stablecoins and five years from now, I suspect we might wonder why we were talking about stablecoins." She cited regulatory concerns, value stability doubts, and stablecoins' impact on bank funding and central bank monetary policy tools.

Waller defended stablecoins as a cost-cutting payment innovation posing no danger, saying "I've always just looked at stablecoins as a payment instrument; there's nothing evil about it, nothing dangerous about it. They are just bringing competition into the payments world." He framed the banking industry's opposition as evidence of the threat stablecoins pose, particularly for cross-border payments.