Hype too often influences policymakers when it comes to regulating markets. So it was reassuring to hear Sir Andrew Bailey, the governor of the Bank of England, resist the momentum behind cryptocurrencies. In his July Mansion House speech, he reiterated his scepticism over the need for a “Britcoin” central bank digital currency or a UK stablecoin, with tokens issued by finance houses and backed by their sterling reserves. As Donald Trump signs stablecoins into US law and rebrands private dollars with political colours, Sir Andrew’s caution isn’t just prudent, it’s essential.
The governor’s view is that UK banks should not be allowed to issue their own stablecoins. Nor should the Bank