The Bank of England and the United Kingdom's Financial Conduct Authority have requested feedback on their proposed approach to regulating stablecoins.

According to a statement from the BoE released on Monday, the proposals cover any future payment systems that use stablecoins in the UK at a systemic scale.

The BoE clarified that the necessity for regulating stablecoins arises from the potential risk to financial stability. "Payments systems using stablecoins, if widely used for retail payments in the UK, could pose risks to financial stability," it added. 

Multiple stablecoin discussion papers released

The proposals come in two discussion papers, one from the BoE and another from the FCA.

The BoE's paper outlines the UK's central bank's intention to regulate operators of …