Can the government issue its own stablecoin?

[chainsniff]

The Bank of England is studying a digital pound (CBDC) but hasn’t launched one yet. Private stablecoins coexist with traditional money under strict rules.

Potential risks include market instability if redemptions spike, operational failures by issuers, and exposure to offshore influence on the UK’s financial system. Regulators are creating safeguards to mitigate these risks.

[Abdul Khan]

Yes — it’s essentially a CBDC, backed and controlled by the state. ️

[alex10]

A government-backed stablecoin would prioritize stability over decentralization.