A Bank of England policy committee member stated on Sunday that the enthusiasm for stablecoins may soon cool, with tokenized deposits—digital versions of traditional bank deposits—likely taking their place, although some colleagues hold differing views.

Stablecoins are a type of crypto asset designed to maintain a stable value and have seen rising popularity in recent years. Although their issuance scale has stabilized in recent months, some industry insiders still anticipate continued growth in demand.

The official remarked at a conference in Dubrovnik, Croatia, "I believe tokenized deposits will most likely replace stablecoins. In five years, we might wonder why we were even discussing stablecoins."

She expressed the view that central bank digital currencies, stablecoins, and digital deposits each have their own market. However, once commercial banks realize they are losing traditional deposits, tokenized deposits will ultimately become the mainstream choice.