BoE Governor Andrew Bailey Warns Adoption of Stablecoins Threatens Central Bank

As the adoption of stablecoins slowly takes over, stewardship and proper regulation become a priority to maintain economic harmony. Bank of England (BOE) Governor Andrew Bailey seems to think the same. Bailey has cautioned that the adoption of digital currencies, including stablecoins, could upset the economic applecart if proper regulation isn’t implemented. Per remarks given.. The post BoE Governor Andrew Bailey Warns Adoption of Stablecoins Threatens Central Bank appeared first on 99Bitcoins.

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Jul 5, 2025 - 00:00

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As the adoption of stablecoins slowly takes over, stewardship and proper regulation become a priority to maintain economic harmony. Bank of England (BOE) Governor Andrew Bailey seems to think the same.

Bailey has cautioned that the adoption of digital currencies, including stablecoins, could upset the economic applecart if proper regulation isn’t implemented.

Per remarks given during his speech at the Andrew Crockett Memorial Lecture on 3 July 2025, the nature of reserve currency has evolved. The monetary world has moved on from the earlier definition of a reserve currency as a fixed monetary anchor to an increasing reliance on secure, liquid assets such as the US Treasuries, and the central bank’s supply of liquidity as and when needed.

“First, at least for the large economies, it could be asked today, what is the point of official reserves?” he said.

Bank of England Governor Andrew Bailey says Stablecoins could cut people's trust in Money if they grow too popular. “They may be needed to support financial system liquidity in situations of extreme stress,” he said.
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