Techub News reports that, according to Bloomberg, Bank of England Deputy Governor Dave Ramsden stated that if stablecoins develop to become systemically important, the UK may need to establish a protection mechanism similar to deposit insurance for stablecoin "deposits" and ensure that stablecoin holders have priority in bankruptcy proceedings within statutory clearing arrangements, in order to maintain public trust in the currency in the event of a stablecoin collapse.
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Techub News reports that, according to Bloomberg, Bank of England Deputy Governor Dave Ramsden stated that if stablecoins develop to become systemically important, the UK may need to establish a protection mechanism similar to deposit insurance for stablecoin "deposits" and ensure that stablecoin holders have priority in bankruptcy proceedings within statutory clearing arrangements, in order to maintain public trust in the currency in the event of a stablecoin collapse.