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Why digital currencies could be ‘big deal’ for central bank balance sheets 

A combination of “systemic” central bank digital currencies and stablecoins could significantly alter central banks’ delivery and control of monetary policy and the size and composition of their assets and liabilities.  That’s according to Andrew Hauser, executive director for markets at the Bank of England. Hauser made the argument as part of a speech he delivered at the Federal Reserve Bank of New York on Wednesday. The size of the effects will “depend heavily on the eventual design of any …

UK Treasury sets out to bolster stablecoin protections following Terra crash

The UK’s Treasury on Tuesday published an initial consultation on managing “systemic failure” in digital assets, proposing bolstered protections related to stablecoins.  It recommended that regulation be put in the hands of the Bank of England, which would have “powers of direction over an appointed administrator” should a so-called digital settlement asset (DSA) fall into trouble. “This role will enable it to pursue its statutory role with regard to financial stability,” the consultation document said, adding that it’s “important to ensure …

Bank of England’s fintech chief says he has left to join Fireblocks

Varun Paul, the head of the fintech hub at the Bank of England, has said he has left to take up a role at Fireblocks, ending a nearly 14-year stint at the UK central bank.  Although it is not yet clear what role he will take at the custody platform, a person familiar with the matter told The Block that Paul is set to join the firm’s corporate strategy team. “16 years after starting my first internship and more than …

Bank of England outlines framework for regulating crypto

The Bank of England said the risks to financial stability from cryptocurrencies and DeFi are small, reflecting their limited size and interconnectedness with the wider financial system, as the UK central bank outlined an updated regulatory framework. The bank’s Financial Policy Committee (FPC) will conduct regular risk assessments with a focus on monitoring risks to systemic financial institutions and core financial markets, risks to the ability to make payments, and impact on real economy balance sheets, according to a report …

UK regulators warn crypto firms aren’t exempt from Russian sanctions rules

The Bank of England, HM Treasury and the Financial Conduct Authority issued a joint statement on sanctions and crypto assets amid Russia’s invasion of Ukraine.  The statement is the first of its kind from UK’s financial regulators, and joins the growing body of public issuances on the topic since the invasion began last month. The statement — a reiteration of commitments to monitor for potential crypto use by sanctioned bodies as well as a reminder on the commitments of regulated …

The Bank of England will push for tighter rules as institutions embrace crypto, official says

The Bank of England wants stronger rules for crypto assets on an international scale as banks and institutional investors deepen their involvement, according to an official at the UK central bank. Sarah Breeden, who works as Executive Director for Financial Stability Strategy and Risk, told The Times in an interview that the focus on international coordination among central bank is a reflection of the difficulty in obtaining data on institutional crypto holdings.  “This is not something the UK can solve …

Bank of England calls for global tightening of crypto regulation

The Bank of England (BOE) said on Monday that regulatory and legal frameworks for crypto-assets would have to be ramped up both domestically and globally to combat the fast-moving market. In its December financial stability report and financial policy committee (FPC) meeting minutes, taken on November 29 and December 9, the bank said that changes would “manage risks, encourage sustainable innovation and maintain broader trust and integrity in the financial system.”  While recognizing the benefits of innovation, it said these developments …