Andrew Bailey, head of the Bank of England, has said stablecoins must comply with the same rules as fiat money and proper supervision is essential to ensure financial stability.
According to him, stablecoins lack "assured value," one of the main characteristics people look for when investing.
For this reason, the authorities should focus on ensuring a sound regulatory framework that is similar in nature to that which applies to traditional financial products.
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Bailey has explained:
"At the Bank of England we have concluded that the public should expect assured value in digital money, and confidence in this is needed to underpin financial stability."
He has pointed out that digital money should not exist only in the form of CBDC. It will be necessary to create an anchor of value of "all forms of money, including new digital ones and to ensure the maximum opportunity for innovation in payments services."