Bank of England policymaker Megan Greene anticipated a decline in the popularity of stablecoins, according to a report published on Monday.
BoE Executive Downplays Stablecoins
Greene expected tokenized deposits to “probably take over” from stablecoins over the next five years, Reuters reported her comments from a conference in Croatia on Sunday.
She further argued that although there is a market for central bank digital currencies, stablecoins, and digital deposits, digital deposits may emerge as the ultimate winner once commercial banks recognize their potential to retain traditional bank deposits.
USD Stablecoins Threatening Other Currencies?
Notably, in a speech delivered at the Bank of Korea International Conference in Seoul, European Central Bank board member Isabel Schnabel said that dollar-pegged cryptocurrencies could have a “significant” impact on financial markets.
“The growing use of stablecoins may further cement the international dominance of the U.S. dollar. Today, virtually all stablecoins in circulation are denominated in dollars, with other currencies playing a negligible role,” Schnabel stated.
She added that the growth of stablecoins, such as Tether (CRYPTO: USDT) and USDC (CRYPTO: USDC), could lead to …
