Multiple experts questioned the potential of stablecoins as future currencies during a UK House of Lords hearing

PANews February 4 News, according to Cointelegraph, the UK House of Lords Financial Services Committee held a hearing where several experts questioned the potential of stablecoins as future currencies. Financial Times economic commentator Chris Giles pointed out that the main reason stablecoins are not yet widespread in the UK is the lack of clear legal and regulatory frameworks, which poses risks for households holding them as currency. He believes that currently, stablecoins mainly serve as a “deposit and withdrawal channel” for cryptocurrencies rather than a “transformative” form of money. During the hearing, experts emphasized the need for strict regulation. Giles agreed with the Bank of England’s approach to regulate stablecoins “like money,” including strict asset backing rules, disposal plans, and ultimate liquidity support. He also warned that stablecoins could be used for illegal activities, and if their application expands, international regulation of exchanges and KYC/AML checks must be strengthened.