Bank of England Deputy Governor: The rise of stablecoins such as Libra could lead to credit depletion and affect the overall economy

The Bank of England Deputy Governor Jon Cunliffe said at a recent event that the rise of stablecoins such as Facebook's Libra could lead to credit depletion and affect the overall economy. Cunliffe said that stablecoins associated with large tech and social media platforms could cause people to transfer most or all of their funds from bank accounts to virtual wallets provided by non-bank institutions. Authorities need to ensure that any stablecoin used as currency meets the standards of a commercial bank's currency and pass other tests in areas such as competition, data protection and anti-money laundering.