Search results for Sarah Breeden
AI & Enterprise
Central banks warn of financial risks from agentic AI
European central banks and financial regulators warned that agentic artificial intelligence could increase volatility during periods of financial market stress and urged safeguards. They also said existing regulatory frameworks struggle to keep pace with rapid advances in AI. Bank of England Deputy Governor Sarah Breeden raised the need for mechanisms to limit or halt trading if flawed models trigger a market collapse. European Central Bank President Christine Lagarde cited growing cyber and data risks.
Crypto
Bank of England reconsiders reserve rules for pound stablecoins
The Bank of England is re-examining holding limits and reserve requirements it planned to apply to pound-denominated stablecoins. It is weighing whether to keep temporary caps on how much individuals and companies can hold and whether requiring at least 40 percent of reserve assets to sit as non-interest-bearing deposits at the central bank is too conservative. The review follows industry concerns that the rules would be hard to supervise and would hurt profitability.
Crypto
Bank of England hints it may withdraw proposed stablecoin holding limits
The Bank of England has left open the possibility of withdrawing proposed limits on stablecoin holdings. Deputy Governor Sarah Breeden told a UK House of Commons committee that if stablecoins spread as substitutes for bank deposits, they could lead to reduced lending and tighter credit, and that holding caps were one way to prevent that. The industry has objected, saying caps would portray Britain as hostile to crypto and push firms abroad, hurting growth and innovation.