Bailey warns banks against launching stablecoins
Date: 2025-07-15 Author: Henry Casey Categories: CRYPTO PAYMENTS
Andrew Bailey, who heads the Bank of England and is also the chairman of the Financial Stability Board, has called on the banking sector to refrain from developing and issuing their own stablecoins. In his opinion, such digital assets could not only increase risks for individual financial institutions, but also undermine the stability of national currencies, depriving states of reliable control over money circulation.
Bailey paid special attention to the need to tighten regulations for companies issuing stablecoins. He noted that users often perceive these tokens as full-fledged money, which means that their issuance should be subject to the same strict requirements as traditional currencies. These statements were made against the backdrop of the US Congress preparing to consider new bills on regulating the stablecoin market as part of the so-called "Cryptocurrency Week".
In addition, the head of the British regulator spoke out against the hasty launch of the central bank's own digital currency. According to him, instead of CBDC, it is worth developing the concept of tokenized deposits. Earlier, the Bank of England had already announced its intention to introduce a digital pound by 2025, while the authorities emphasized that the new currency would preserve the confidentiality of transactions and user data.
Bailey drew a parallel with other regions: he believes that the United States is moving towards the introduction of stablecoins, while the European Central Bank is focused on the digital euro project. However, in his opinion, the idea of tokenizing bank deposits has not yet received due attention from major financial players.
The head of the Bank of England did not ignore the topic of bitcoin. He warned investors against investing in the largest cryptocurrency, emphasizing that bitcoin does not function as money and is not suitable for everyday payments. According to him, those who still decide to invest in bitcoin do so entirely at their own peril and risk. Earlier this year, Bailey called Bitcoin an ineffective means of payment and pointed out its slow integration into traditional financial infrastructure.
Thus, the British regulator once again outlined its tough stance on digital assets, emphasizing that when developing new technologies, it is necessary to maintain financial stability and reliable protection of national currencies from possible destabilization.
