Bank of England Governor Bailey: Concerned that stablecoins cannot be exchanged for cash at any time

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Techub News reports, according to Cointelegraph, that Bank of England Governor Andrew Bailey expressed concern that some stablecoins may not be redeemable for cash at any time without using cryptocurrency exchanges, which could limit their convertibility during market fluctuations. He stated that if stablecoins are widely used for cross-border payments, dollar tokens that are difficult to exchange might flow to countries like the UK that plan to implement strict redemption laws. The American banking community has raised similar concerns to Congress and is pushing the Senate Cryptocurrency Market Structure Act to prohibit third-party platforms from offering stablecoin yield payments. After months of negotiations, the crypto and banking groups failed to reach an agreement on the ban, with the latest version of the bill banning idle balance rewards for stablecoins but allowing platforms to offer other forms of customer rewards. The Senate Banking Committee has scheduled a markup of the bill for Thursday.

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