The principle of same risk, same regulation is technology neutral – and could provide clearer expectations to innovators for how they will be treated by regulators when entering the market. But while same risk, same regulation may seem obvious, as payments chains increasingly continue to involve new entities, our regulatory framework may require some adjustment to meet this principle. Responding to innovation around the corner Some of the most high profile potential changes in the way we pay haven’t happened yet. The new “global currency” proposed by Facebook and partners, Libra, generated headlines across the globe when it was announced last summer. Other proposed private ‘stablecoins’ continue to emerge. The language some of these proposals use to describe themselves is grand. Libra promises to “Reinvent money. Transform the global economy. So people everywhere can live better lives.”  In practice, stablecoin arrangements would use cryptoassets (known as coins or tokens) for transactions currently processed by retail or wholesale payments systems. Existing crypto assets – for example Bitcoin – have so far proven too volatile to become widely accepted as payment. Stablecoins propose to address this by using asset backing to establish and maintain a stable value. It is concievable that some stablecoins – particularly if integrated into existing online platforms or social media – could achieve widespread adoption very quickly. In India, Google Tez reported having 50m users 10 months after its launch in September 2017. In China, Alipay and WeChat Pay by some measures handled more than $ in mobile payments in 2018.
Spencer Dale: 2010 – a progress report Speech by Mr Spencer Dale, Executive Director and Chief Economist of the Bank of England, at the Kent Business School 21st anniversary dinner, Canterbury, 1 December 2010. *  *  *  I would like to thank Ryan Banerjee, Rohan Churm, and Geoff Coppins for their considerable help in preparing this speech. The views expressed are my own and do not necessarily reflect those of other members of the Monetary Policy Committee. Introduction It is an honour to be invited here this evening to help you and the Business School celebrate its 21st anniversary. Birthdays are a natural time to pause and reflect – especially those that mark a coming of age. Reflecting on your first 21 years, much has changed since the Business School was founded. Some of you may remember that 1989 was the year in which Nigel Lawson resigned as Chancellor and the Berlin Wall fell. You may remember less well that it was also the year that Kylie and Jason enjoyed four Number 1 hits and Coronation Street attracted its largest ever audience to watch Alan Bradley meet his grisly end under a Blackpool tram. How time flies. The economy has also had its fair share of ups and downs since then. After the 1990s recession, we enjoyed 63 quarters of consecutive growth, withstanding en route the effects of Black Wednesday and the dotcom bubble.