Bank of England’s Greene Says Tokenized Deposits Could Supplant Stablecoins

Bank of England policymaker Megan Greene predicted on May 31, 2026, that stablecoins may soon lose market share to tokenized deposits—digital versions of traditional bank accounts. Speaking at a conference in Dubrovnik, Croatia, Greene said she expects tokenized deposits to eventually dominate, remarking, “Five years from now, I suspect we might wonder why we were talking about stablecoins.” Greene argued that stablecoins are not truly stable, face regulatory uncertainty, and risk being used for illicit purposes. She also warned they divert deposits from commercial banks, potentially weakening monetary policy. In contrast, Federal Reserve Governor Christopher Waller defended stablecoins as a legitimate payment innovation that brings competition and should not be stifled by overregulation. Greene described the future landscape as a race between a tortoise (central bank digital currencies), a hare (stablecoins) and a rhino (tokenized deposits), with the rhino likely to prevail once banks realize they cannot afford to lose fee revenue and accelerate development.