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Bank of England Governor: Bitcoin and stablecoins require different regulatory approaches, still exploring UK CBDC

ChainCatcher news, according to The Block, Bank of England Governor Andrew Bailey pointed out that Bitcoin and stablecoins require different regulatory measures, with higher regulatory thresholds for stablecoins. He also confirmed that central bank digital currency is still under research. On Tuesday, Bailey delivered a speech at the Booth School of Business at the University of Chicago in London, discussing changes in financial markets and their impact on stability, while reflecting on potential changes in the global cryptocurrency regulatory environment, especially after Trump's election.Bailey stated that the cryptocurrency regulatory reform plan of the Trump administration is still unclear, while the Biden administration, particularly the Securities and Exchange Commission (SEC), faces challenges in establishing a regulatory framework, opting instead to take action through the courts, which has created inconsistencies in the regulatory framework. In the UK, Bailey divides the cryptocurrency industry into two parts: cryptocurrencies not included in the banking system and stablecoins.He referred to the former as "pure investment risk" due to its high volatility, non-traditional currency status, and skepticism about its potential to become a currency. However, Bailey also mentioned that he understands people invest in cryptocurrencies in a portfolio manner after acknowledging the risks. Regarding stablecoins, Bailey believes they fulfill some functions of money, especially in payments, and have support, but stablecoins also exhibit characteristics of mutual funds, with insufficient transparency. Therefore, Bailey emphasized the need to establish reasonable regulatory standards, particularly in the payments sector, where stablecoins should be appropriately regulated like money.As for the potential central bank digital currency or "digital pound," Bailey stated that there are significant differences from stablecoins, and the Bank of England is collaborating with the UK government on research.
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