EddieJayonCrypto
12 Feb 25
Bank of England Governor Andrew Bailey expressed skepticism about the role of central bank digital currencies (CBDCs) in financial stability, emphasizing the need for central banks to maintain control over monetary transmission through the banking system. He highlighted the increasing role of non-ba...
Bank of England Governor Andrew Bailey has expressed skepticism about the role of central bank digital currencies (CBDCs) in financial stability. He emphasized the need for central banks to maintain control over monetary transmission through the banking system. Bailey highlighted the increasing role of non-bank financial institutions in global finance but stressed that this should not broaden access to central bank money beyond traditional banks. He confirmed that the Bank of England is studying the feasibility of a digital pound but emphasized that the decision to introduce a CBDC must be based on clear economic benefits. Bailey also discussed Bitcoin and stablecoins, noting that stablecoins must meet a high regulatory bar to operate within the payments ecosystem. With several major economies exploring CBDCs to modernize payments and financial infrastructure, Bailey emphasized that any digital currency issued by the Bank of England must preserve the existing financial framework. He highlighted that a digital pound would not undermine the fundamental role of commercial banks as intermediaries and that the concept of central bank liquidity must remain bank-centric. Bailey also stressed that stablecoins must meet a "high bar" of regulation if they are to operate within the payments ecosystem. His comments come amid growing discussions on stablecoin regulation, particularly as the Bank of England and the UK government continue to assess their role in digital finance. Bailey acknowledged that the election of pro-crypto US President Donald Trump could reshape global regulatory dynamics but noted that it remains unclear what specific reforms his administration will pursue. In a separate context, TRON's 2024 Recap has revealed record growth, as highlighted in reports from Messari, CryptoQuant, CryptoRank, and Cointelegraph, showcasing the cryptocurrency's continued development and progress within the market.