Published by Global Banking & Finance Review®
Posted on October 1, 2025
1 min readLast updated: January 21, 2026
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BoE's Andrew Bailey calls for stablecoin regulation akin to banks, ensuring depositor protections and BoE reserve access.
LONDON (Reuters) -Bank of England Governor Andrew Bailey said on Wednesday that any stablecoin that becomes widely used as a means of payment in Britain needs to be regulated like standard banks, with depositor protections and access to BoE reserve facilities.
Bailey - a long-standing sceptic about cryptocurrencies - wrote in an article in the Financial Times that it would be "wrong to be against stablecoins as a matter of principle".
But he said their main current use as a way to enter and exit cryptocurrency trades did not amount to a standard money-like means of payment.
Bailey confirmed the BoE would publish a consultation paper on stablecoins in the coming months.
"In doing so, we will set out that widely used UK stablecoins should have access to accounts at the BoE in order to reinforce their status as money," he said.
(Reporting by David Milliken; Editing by Kate Holton)
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as a currency or commodity, reducing volatility compared to other cryptocurrencies.
The Bank of England is the central bank of the UK, responsible for maintaining monetary stability, regulating financial institutions, and overseeing the country's monetary policy.
A consultation paper is a document released by a regulatory body to gather feedback from stakeholders on proposed regulations or policies, allowing for public input before final decisions are made.
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