US EditionWidely-used stablecoins need to be regulated like money, BoE's Bailey says
Bank of England Governor Andrew Bailey highlights stablecoins' potential to reduce banks' deposit-based lending reliance and transform credit provision, with nearly $300 billion circulating globally.
- On Oct. 1, Bank of England Governor Andrew Bailey suggested stablecoins could disrupt traditional commercial lending and argued they can drive innovation in payment systems.
- The governor argued the financial system `does not have to be organized` with heavy reliance on commercial bank lending and said banks and stablecoins could coexist with non-bank credit providers.
- Nearly $300 billion in stablecoins are in circulation, dominated by Tether's USDT and Circle's USDC, and the Bank of England has proposed caps on individual and business stablecoin holders.
- Bailey confirmed plans to consult on a systemic stablecoin regime, while industry groups warned proposed caps would be costly and could leave the UK behind other jurisdictions in the coming months.
- To protect users, Bailey said widely used UK stablecoins should have depositor protections and access to Bank of England reserve accounts, aiding underserved individuals and businesses.
18 Articles
18 Articles
BOE’s Bailey Softens Skepticism on Future Role of Stablecoins
Bank of England Governor Andrew Bailey signaled a softer approach toward stablecoins on Wednesday, saying that the digital currency could drive innovations in payments and co-exist with the current financial system.
Widely-used stablecoins need to be regulated like money, BoE's Bailey says
LONDON :Any stablecoin that becomes widely used as a means of payment in Britain needs to be regulated like money in a standard bank, Bank of England Governor Andrew Bailey said on Wednesday, meaning it would need depositor protections and access to BoE reserve facilities.The comments made in an article in t
The Governor of the Bank of England, Andrew Bailey, points out that stablescoins could play a key role in the transformation of the British monetary system. By saying that they can reduce the country's dependence on commercial banks, Bailey opens the way for a deep reflection on the future of currency and credit in the United Kingdom. The article The Bank of England evokes the potential of stablecoins in the face of banks appeared first on Coint…
BoE Governor Bailey Says Stablecoins Weaken Banks’ Grip On Money - FinanceFeeds
Governor Questions Commercial Bank Dominance Bank of England Governor Andrew Bailey suggested that stablecoins could reduce the UK’s reliance on commercial banks, a remark that hints at a possible rethinking of the central bank’s approach to digital assets. Writing in the Financial Times on Wednesday, Bailey described the traditional model of fractional reserve banking—where banks hold a portion of deposits and lend out the rest—as only one way …
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