UK banks press on with tokenised deposits after BoE stablecoin warning

London, 26 September (Reuters) – England’s largest lenders are progressing with plans to start the token versions of customer deposits next year, which follows the claim of prioritizing the technology of British Governor Andrew Bailey through Stablecoins.

Tokinization typically refers to the creation of digital representations of assets such as deposits, stock and bonds stored in a block chain. Fans say they can make the transaction faster, cheaper and safer.

Industry Group UK Finance said on Friday that banks, including HSBC, Natwest and Lloyds, started a pilot using deposit to pay for payment through online markets.

Skeptical to Bailey Stablecoins

Pilot said Bailey believes that in July, “although not against Stablecoins”, he could not understand his needs and that it offers more value to tokens.

Stablecoins, a crypto currency type fixed to a Fiat currency, gained popularity. US President Donald Trump’s Genius law brought more regulatory clarity and encouraged several US banks to say that they could enter a market dominated by non -bank players.

On Thursday, a group of European lenders announced that it plans to launch a stablecoin in euro.

Bailey warned that Stablecoins received money from the banking system and threaten financial stability. In an interview with The Times in July, he warned banks to publish their own stablecoins.

Although the British financial behavior authority was not expected to conclude the stablecoin regulation by 2026, Boe banks can try deposits to your Token in the current arrangements, he said.

A high -level Banking Banking Officer said that deposits are lacking from the “Stablecoin’s brand image” but an important technological upgrade.

Many great lenders are examining both of them. Citi CEO said that deposits in July are probably more important than a stablecoin.

The UK’s deposit pilot will continue until the mid -2016, the UK’s Barclays, Nationwide and Santander. The pilot will also test applications in the reorganization process and digital asset placement.

Jana Mackintosh, General Manager of Payment and Innovation in the UK finance, told Reuters that tokenization allows technological change while keeping payments in the banking system. (Editing by Tommy Reggori Wilkes and Mark Potter)