Bank of England Governor Touts CBDCs Over Stablecoins: Report

BoE chief Andrew Bailey said the bank wouldn’t be moving into the retail bank account business through a CBDC.

AccessTimeIconNov 23, 2021 at 8:53 p.m. UTC
Updated May 11, 2023 at 7:02 p.m. UTC

The governor of the Bank of England (BoE), Andrew Bailey, said that exploring a central bank digital currency (CBDC) would be better for financial stability than asset-backed stablecoins, which the banking chief said he was “skeptical” about.

Speaking at a House of Lords’ Economic Affairs Committee on Tuesday, Bailey said a CBDC would be a better alternative than evolving towards “some world of (asset-) backed stablecoins which has money-like features which could be regulated,” Reuters reported.

  • Eisenberg's $110M Fraud Trial Opens; FSI Calls for Consistency in Stablecoin Regulation
    02:06
    Eisenberg's $110M Fraud Trial Opens; FSI Calls for Consistency in Stablecoin Regulation
  • El Salvador Bags Major Bitcoin Gains; Hong Kong's Stablecoin Push
    02:11
    El Salvador Bags Major Bitcoin Gains; Hong Kong's Stablecoin Push
  • Existing Stablecoin Models Are Not 'Totally Fair,' Usual CEO Says
    00:52
    Existing Stablecoin Models Are Not 'Totally Fair,' Usual CEO Says
  • How USD0 Plans to Bring More Transparency to the Existing Stablecoin Model
    14:10
    How USD0 Plans to Bring More Transparency to the Existing Stablecoin Model
  • Bailey told the Lords Committee the BoE would not be moving into the retail bank account business through a CBDC, adding that it was not a monetary policy tool either, according to the report.

    The BoE, like many central banks around the world, has published research and discussed a move to CBDCs of some sort or the other. Recently, the Swiss central bank said it was technically ready to deploy a wholesale CBDC for interbank payments, but eschewed a specifically retail-focused CBDC.

    It’s not the first time BoE’s Bailey has called for stablecoins to come under scrutiny; indeed, it’s something of a recurring theme.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Ian Allison

    Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.