Several experts question the potential of stablecoins as future currency during a UK House of Lords hearing

PANews, February 4th – According to Cointelegraph, the UK Parliament’s House of Lords Financial Services Regulation Committee held a hearing where several experts questioned the potential of stablecoins as the currency of the future. Chris Giles, economic commentator for the Financial Times, pointed out that the main reason stablecoins have not yet become widespread in the UK is the lack of clear legal and regulatory frameworks, which makes it risky for households to hold them as currency. He believes that stablecoins currently mainly serve as an “on/off ramp” for cryptocurrencies, rather than a “transformative” form of money.

During the hearing, experts emphasized the necessity of strict regulation. Giles agreed with the Bank of England’s approach to regulate stablecoins “like money,” including strict asset backing rules, resolution plans, and ultimate liquidity support. He also warned that stablecoins could be used for illegal activities, and if their application expands, there must be strengthened international regulation of exchanges and KYC/AML reviews.