Wide use stablecoins should be regulated like money says BoE’s Bailey

Introduction
Bank of England Governor Andrew Bailey has declared that stablecoins, if adopted widely, should be regulated in the same way as traditional money. His remarks came during a speech in London where he outlined concerns about the growing role of privately issued digital tokens in global payments.

Bailey’s position
Bailey argued that stablecoins have the potential to become embedded in the financial system, which means they must be subject to strict oversight. He pointed out that if these tokens are used at scale for everyday transactions, the risks to consumers and the economy would be comparable to those posed by banks and payment providers. In his view, regulatory treatment should therefore be consistent with the standards applied to established financial institutions.

Industry reaction
Crypto industry representatives responded with mixed reactions. Some welcomed the idea of clear guidelines, noting that uncertainty around regulation has been one of the biggest obstacles to mainstream adoption. Others, however, criticized Bailey’s comments as overly restrictive, warning that treating stablecoins exactly like money could dampen innovation. They argue that regulation should reflect the unique technological features of blockchain rather than forcing it into old financial categories.

Analysis of significance
The governor’s remarks highlight the growing pressure central banks feel as digital assets gain traction. Stablecoins already play a crucial role in crypto markets by facilitating trading and offering a bridge to traditional currencies. If their use extends into retail payments, their influence on monetary policy and financial stability could increase dramatically. By calling for regulation at the level of traditional money, Bailey signals that the Bank of England does not intend to allow stablecoins to operate in a regulatory gray zone.

Conclusion
Andrew Bailey’s call to regulate stablecoins like money reflects the seriousness with which central banks are treating the rise of digital currencies. While the industry debates whether this approach is necessary or stifling, the statement underscores a clear trend: regulators are moving to bring stablecoins under the same umbrella as the financial system they seek to complement or disrupt. The outcome of these debates will determine whether the UK becomes a hub for stablecoin innovation or a market constrained by heavy oversight.