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 Nov 23, 2021 at 9:16 p.m. UTC
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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.

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.

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