The UK House of Lords questions Coinbase executives on stablecoin risk issues

SmartContractAuditor · 2026-03-04T14:16:05+00:00

The UK House of Lords questions Coinbase Vice President Tom Duff Gordon about the risks stablecoins pose to bank deposits and the financial system. Gordon believes that stablecoins are safer than uninsured bank deposits and emphasizes their advantages in reducing payment costs and accelerating cross-border payments. Despite concerns, Gordon refutes the worries about the risks of stablecoins.

SmartContractAuditor

2026-03-04 14:16:05

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Odaily Planet Daily News: The UK House of Lords questioned Coinbase International Policy Vice President Tom Duff Gordon on Wednesday, focusing on whether stablecoins could lead to bank deposit withdrawals and pose new risks to the UK financial system.

Gordon stated that fully reserved and regulated stablecoins are “safer than uninsured bank deposits” because they are backed 1:1 by cash and high-quality government securities and can be redeemed at face value. He emphasized that stablecoins can significantly reduce payment costs and accelerate cross-border payments.

Members of the UK House of Lords questioned the redemption risks of stablecoins during crises, their potential impact on banks, and their role in criminal activities. Gordon countered that concerns about bank disintermediation are “seriously exaggerated” and emphasized that Coinbase strictly enforces KYC and anti-money laundering measures. (Cointelegraph)

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