Bond.az - Bank of England policymaker Megan Greene said on Sunday that tokenised deposits will likely replace stablecoins within five years as commercial banks move to protect traditional deposit bases.
Speaking at a conference in Dubrovnik, Croatia, Greene noted that digital versions of traditional bank deposits may become the dominant form of digital money. "I think tokenised deposits are probably going to take over from stablecoins and five years from now, I suspect we might wonder why we were talking about stablecoins," she said.
Stablecoins, crypto assets designed to maintain a stable value, have seen issuance level off recently. Greene predicted tokenised deposits would prevail once banks recognize the risk of losing deposits.
However, U.S. Federal Reserve official Christopher Waller defended stablecoins as a financial innovation that could reduce costs, arguing against excessive regulation.
