The UK Treasury has instructed the Bank of England to be ready to bailout a failure of a systemically important stablecoin.
Treasury said that a failure of a systemically important stablecoin could pose “a wide range of financial stability as well as consumer protection impacts”
Treasury proposed that the collapse of a big stablecoin issuer should be managed by the BoE
BoE would use "a so-called special administration regime to limit the fallout on the real economy". Such regimes are already used to handle some types of insolvencies.
Info comes via the UK Times (gated)
