Bank of England Governor Indicates Significant Change on Stablecoins: Potential to Revolutionize UK’s Financial Framework

Andrew Bailey, the Governor of the Bank of England (BoE), has notably eased his position on stablecoins. In an interview with the Financial Times on 1 October 2025, Bailey remarked that it would be “incorrect to oppose stablecoins on principle.”

Stablecoins are digital assets crafted to uphold a stable value by being pegged to traditional currencies, such as the British Pound, at a one-to-one ratio. Unlike BTC, stablecoins provide stability while delivering the advantages of digital transactions. Therefore, Bailey’s recent remarks may signify the UK’s move towards accepting stablecoins. This is particularly relevant given that analysts at Citigroup anticipate this trading market could soar to $4 trillion by 2030.

Opinion: According to the Bank of England’s Governor Andrew Bailey, stablecoins could play a significant role in the transition of the financial system away from a dependency on commercial banks for lending, in an article for the Financial Times https://t.co/kUF8N6KBl9 pic.twitter.com/zJALFySz0W

— Financial Times (@FT) October 1, 2025

Currently, there are approximately $300 billion worth of stablecoins circulating worldwide, with popular options including Tether’s USDT and Circle’s USDC.

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BoE Governor Believes Banks and Stablecoins Can Co-Exist

Gaining momentum stablecoins must be regulated like traditional money, BoE’s Bailey asserts https://t.co/epUUtM8Yzd pic.twitter.com/1kNpRmH7ur

— Reuters UK (@ReutersUK) October 1, 2025

“It is feasible, at least in part, to distinguish between money and credit provision, allowing banks and stablecoins to coexist, with non-banking entities taking on more of the credit provision responsibilities,” explained the Governor of the Bank of England.

Interestingly, Bailey had previously held that stablecoins would not replace commercial bank money.

In contrast, the US is experiencing swift advancements. Wyoming has become the inaugural state to introduce a government-supported stable token, while Congress passed the GENIUS Act, prohibiting stablecoin issuers from paying direct interest.

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Is The US–UK Crypto Alliance A Turning Point For Stablecoin Regulation?

The crypto alliance between the US and UK is intensifying, with industry experts predicting that stablecoins will take a prominent role. According to a Financial Times article published on September 16, 2025, this evolution followed discussions between US Treasury Secretary Scott Bessant and Chancellor Rachel Reeves. Notable companies like Coinbase, Circle, and Ripple, as well as major banking institutions such as Citi, Bank of America, and Barclays, participated in the London discussions.

It seems that the alignment of the US and UK capital markets is reliant on stablecoins. British officials view regulatory alignment with the US as an avenue for UK businesses to tap into larger capital markets and attract new American investments.

Read More: US-UK Crypto Alliance Heats UP With Stablecoins As Its Linchpin

 

 

 

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