Guy Fawkes 
Andrew Bailey, the Bank of England (BoE) Governor has dramatically softened his stance on stabelcoins. Talking to the Financial Times on 1 October 2025, Bailey said that it would be “wrong to be against stablecoins as a matter of principle.”
Stablecoins are digital tokens designed to maintain a stable value by being pegged to traditional currencies like the British Pound at a one-to-one ratio. And unlike Bitcoin, stabelcoins can offer stability while offering benefits of digital transactions. Hence, Bailey’s latest comments could finally indicate UK’s acceptance of stablecoins. Especially since industry analysts at Citigroup predict this market could explode to $4 trillion by 2030.
Opinion: Stablecoins could form a major part of the shift in the financial system away from reliance on commercial banks for lending, governor of the Bank of England Andrew Bailey said in an article for the Financial Times https://t.co/kUF8N6KBl9 pic.twitter.com/zJALFySz0W
— Financial Times (@FT) October 1, 2025
Currently, nearly $300 billion worth of stablecoins are in circulation globally with popular options including Tether’s USDT and Circle’s USDC.
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BoE Governor Thinks Banks And Stablecoins Should Co-Exist
Widely-used stablecoins need to be regulated like money, BoE’s Bailey says https://t.co/epUUtM8Yzd pic.twitter.com/1kNpRmH7ur
— Reuters UK (@ReutersUK) October 1, 2025
“It is possible, at least partially, to separate money from credit provision, with banks and stablecoins coexisting and non-banks carrying out more of the credit provision role,” Bank of England Governor explained.
Interestingly, Bailey previously was of the opinion that stablecoins couldn’t be a substitute for commercial bank money.
Meanwhile, the US has seen rapid developments. Wyoming became the first state to launch a government-backed stable token, while Congress passed the GENIUS Act, banning stablecoin issuers from paying direct interest.
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Is The US–UK Crypto Alliance A Turning Point For Stablecoin Regulation?
The US-UK crypto alliance is heating up, and industry insiders expect stablecoins to take centre stage. According to a Financial Times report published on September 16, 2025, this development occurred following a meeting between US Treasury Secretary Scott Bessant and Chancellor Rachel Reeves. Prominent firms such as Coinbase, Circle, and Ripple, along with banking giants including Citi, Bank of America, and Barclays, also attended the talks held in London.
It appears that the syncing of the US-UK capital markets hinges on stablecoins. According to the report, British officials see regulatory alignment with the US as a means for UK firms to access deeper capital markets and secure fresh American investments.
Read More: US-UK Crypto Alliance Heats UP With Stablecoins As Its Linchpin
Key Takeaways
The post Bank of England Governor Signals Major Shift on Stablecoins: Could Transform UK’s Financial System appeared first on 99Bitcoins.
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