Overview

• Governor Andrew Bailey said the UK should reap the benefits of stablecoins and that opposing them on principle would be wrong.
• He proposed that widely used UK stablecoins qualify for Bank of England accounts to reinforce their status as money.
• The central bank plans to consult in the coming months on rules that would regulate such tokens in a similar manner to traditional money with safeguards for stability.
• Bailey said cash and digital tokens can coexist, with money and credit potentially provided by different types of institutions.
• He reiterated that stablecoins will not replace traditional bank money, framing innovation within protections for the financial system.