The UK House of Lords questioned Coinbase executives about the risks of stablecoins.

The UK House of Lords questioned Tom Duff Gordon, Coinbase's Vice President of International Policy, on Wednesday, focusing on whether stablecoins could lead to a loss of bank deposits and pose new risks to the UK financial system. Gordon stated that fully reserve and regulated stablecoins are "safer than uninsured bank deposits" because they are backed 1:1 by cash and high-quality government securities and are redeemable at face value. He emphasized that stablecoins can significantly reduce payment costs and accelerate cross-border payments. Members of the House of Lords questioned the redemption risks of stablecoins during a crisis, their potential impact on banks, and their role in criminal activities. Gordon countered that concerns about bank disintermediation were "grossly exaggerated" and stressed that Coinbase strictly enforces KYC and anti-money laundering measures. (Cointelegraph)