Susie on Nostr: If the Bank of England writes the backing, liquidity and redemption rules, a sterling ...

If the Bank of England writes the backing, liquidity and redemption rules, a sterling stablecoin starts to look a lot less private.

Unlike stablecoins, Bitcoin has no issuer, no redemption promise and no central bank setting the terms.

That is why bitcoinpolicyuk (nprofile…s7n9) engages with consultations like this. Bitcoin should not inherit the regulatory assumptions of systems built around issuers, reserves and redemption.

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nevent1q…wteq

How much influence should the Bank of England have over privately issued money?

Bitcoin Policy UK has submitted its response to the Bank’s draft Code of Practice for systemic sterling stablecoins.

We’ve asked the Bank to look closely at:

* the combined cost of the rules

* the 30% Bank of England deposit requirement

* up to 95% of backing assets in government debt for some issuers

* how much personal data is collected during redemption

* how dependent issuers become on Bank of England

Good regulation should reduce risk without closing the door to competition.

Read the full article and our submission:

https://bitcoinpolicy.uk/blog-1/f/our-ask-to-boe-on-stablecoins-regulate-the-risk-not-the-model

Susie (npub1hwg…03sg)