According to @iampaulgrewal, forthcoming Bank of England proposals would allow GBP stablecoins to be backed by short-dated government debt rather than only 0%-yielding central bank cash, enabling interest-earning reserves via gilts for issuers (source: @iampaulgrewal). According to @iampaulgrewal, the proposals also permit small-scale use of stablecoins for settlement in tokenised markets and endorse a mixed onchain cash ecosystem that includes both tokenised bank deposits and stablecoins (source: @iampaulgrewal). Trading takeaway: these defined reserve assets, initial settlement use-cases, and coexistence with tokenised deposits establish clearer operational parameters for GBP stablecoin issuance and UK onchain market structure (source: @iampaulgrewal).