Bank of England's Greene Says Stablecoin Demand May Fade Within Five Years, Replaced by Tokenized Deposits

According to Bank of England Monetary Policy Committee member Megan Greene on Sunday, stablecoin enthusiasm may soon fade, to be replaced by tokenized deposits—digital versions of traditional bank deposits. Speaking at a conference in Dubrovnik, Croatia, Greene predicted that within five years, tokenized deposits could become the dominant form, leaving stablecoins "a distant memory." She noted that central bank digital currencies (CBDCs), stablecoins, and digital deposits each have market roles, but commercial banks' desire to retain traditional deposits will likely make tokenized products the ultimate winner. Meanwhile, U.S. Federal Reserve Governor Christopher Waller defended stablecoins during the same discussion, calling them financial innovation that could reduce costs and should not be over-regulated, stating they are simply a "payment tool" that brings competition to the payments sector.
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