The Bank of England considers providing deposit insurance protection for stablecoins and plans to introduce regulatory rules by the end of the year

【BitPush】UK Bank of England Deputy Governor Dave Ramsden recently revealed that the central bank is studying how to protect widely used stablecoins, especially in the event of a systemically important stablecoin collapse, to maintain public confidence in the monetary system.

Ramsden’s approach is very clear: establishing long-term trust in stablecoins may require a protection mechanism similar to bank deposit insurance. Specifically, this means ensuring that stablecoin holders are granted priority creditor status in legal settlement procedures. In other words, the Bank of England is likely to extend the current rules protecting bank deposits to the stablecoin sector.

For reference, the Bank of England has already increased the protection limit for retail cash deposits from £85,000 to £120,000 to prevent bank failure risks. According to the plan, regulatory rules for stablecoins will be officially implemented by the end of the year. This means that in the future, stablecoins operating in the UK market will have a clear regulatory framework.