Bank of England Chief Calls for Strict Stablecoin Rules: Details
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Bank of England Governor Andrew Bailey has emphasized the need for stringent regulations on stablecoins, distinguishing them from Bitcoin and other cryptocurrencies. Speaking at The University of Chicago Booth School of Business in London, Bailey addressed the evolving landscape of financial markets and the role of digital assets. Bank of England Chief Urges Tougher Stablecoin Rules Andrew Bailey, Bank of England Governor, stated that stablecoins require strict regulatory measures due to their role in payments. He described them as financial instruments that perform some functions of money but also share characteristics with mutual funds. Bailey emphasized that stablecoins need a clear framework to meet high regulatory standards. Moreover, Bailey highlighted the difference between stablecoins and Bitcoin, noting that Bitcoin operates outside the banking system and remains a speculative asset. He clarified that Bitcoin is not a form of money but a high-risk investment option. However, he acknowledged that investors might hold it as part of a diversified portfolio, provided they understand the risks. However, Andrew expressed uncertainty about the incoming Trump administration crypto regulations. Comparing the development to the previous Biden administration, the BoE Governor commented, “I think that the Biden administration, my impression is particularly the SEC, had got into a situation where it couldn’t get a regulatory framework and was using action through the courts. And that was becoming more challenging, frankly. So there is a gap there in terms of having a consistent regulatory framework, but we don’t know what that’s going to be.” Digital Pound In Sight? Additionally, the Bank of England is still evaluating the introduction of a central bank digital currency (CBDC) in collaboration with the UK government. Bailey stated that discussions are ongoing regarding the potential benefits of a digital pound in the financial system. The governor compared the situation to early skepticism…
Filed under: News - @ February 12, 2025 6:16 am