The Bank of England officially recognizes stablecoins as a "new form of money"! Applications for systemic stablecoins will open by year-end

Bank of England Executive Director Sasha Mills clearly stated at the FT Digital Asset Summit that the central bank views stablecoins as "a new form of money" and will not pick sides between tokenized deposits and stablecoins, while announcing that applications for systemic stablecoins will open by year-end. The FCA noted that GBP-denominated stablecoins still have room to develop, as 99% of global stablecoins are USD-denominated. (Background: Bank of England proposes new stablecoin regulations: individual holding cap of £20,000, corporate cap of £10 million; reserve assets up to 95% in government bonds) (Context: Bank of England's proposal to "limit stablecoin holdings" sparks outrage: simply unworkable, will only leave UK behind in the global crypto race) Bank of England (BoE) Executive Director Sasha Mills clearly stated on Wednesday at the Financial Times Digital Asset Summit (FT Digital Asset Summit) that the central bank views stablecoins as "a new form of money" and announced that applications for systemic stablecoins will be open before the end of this year. Meanwhile, the UK's Financial Conduct Authority (FCA) also pointed out that GBP-denominated stablecoins still have room to play a role, as 99% of global stablecoins are USD-denominated and do not comply with the US GENIUS Act. At the summit, Sasha Mills indicated that the Bank of England's positioning on stablecoins is quite clear: "We view stablecoins as a new form of money — because we think that's what they are. They must be as robust as all other forms of money." This statement signifies that the Bank of England has formally incorporated stablecoins into the monetary system's regulatory framework, rather than simply treating them as crypto assets or payment tools. Mills emphasized that in the debate between tokenized deposits and stablecoins, the Bank of England is "not picking winners." She stated: "At this stage, we don't yet know which use cases are better suited to which new form of money." This contrasts with JPMorgan's earlier view that "European and Singaporean regulators prefer tokenized deposits" — the Bank of England clearly takes a more open, neutral stance. She further explained that so-called "systemic stablecoins" refer to those widely used for payments and potentially posing risks to UK financial stability; such stablecoins will be directly regulated by the Bank of England. Mills announced: "By the end of this year, we will open up and welcome applications." Operators intending to issue systemic stablecoins will then be able to submit applications to the Bank of England. At the same meeting, FCA Director of Payments and Digital Assets Matthew Long pointed out that not all stablecoins fall under the central bank's jurisdiction — stablecoins that do not reach systemic scale will be regulated by the FCA, and GBP-denominated stablecoins "still have a role to play." Long stated: "We have established a credible, redeemable stablecoin regulatory regime, and we are proud of it." He added that the FCA is supporting innovative enterprises that meet regulatory standards, "They are meeting the standards we set in the regulations and are launching stablecoins." Notably, Long's remarks hinted that UK digital bank Revolut may issue its own stablecoin before July this year — which would become one of the first stablecoin products to debut under the UK regulatory framework. Mills highlighted a key statistic at the meeting: 99% of global stablecoins are USD-denominated, and most of these stablecoins were issued before the US GENIUS Act (stablecoin regulatory legislation) passed, currently not complying with the Act's standards. She noted that USD stablecoin issuers are "issuing new types of stablecoins to align or anticipate alignment with the Act." Mills stated that the UK is on the same timeline as the US in stablecoin regulation, but the UK's regulatory regime "is considered more robust" because "we regulate it the way we regulate money." This remark implies that the UK's regulatory framework may be more comprehensive than the US — the UK treats stablecoins as money, rather than merely as payment tools or commodities. Analysts believe that the Bank of England's statement carries milestone significance for the stablecoin industry. If the UK successfully opens systemic stablecoin applications by year-end, London is poised to gain first-mover advantage in digital financial regulation, attracting global stablecoin issuers to set up shop.