BoE’s Bailey vows stronger global action on stablecoin risks

Published 13/10/2025, 09:40

Investing.com -- Bank of England Governor Andrew Bailey has pledged to strengthen the global policy response to emerging threats from private finance and the increasing use of stablecoins.

As chair of the Financial Stability Board (FSB), Bailey outlined plans in a letter to the Group of 20 nations to make the FSB’s surveillance "more flexible and quicker to recognise, and respond to, emerging vulnerabilities."

"Whether it is the rise of private finance, the implications of geopolitical tensions, or the increasing role of stablecoins for payment and settlement purposes, our ability to detect and address emerging risks is critical," Bailey stated in his communication delivered before the G20 meetings taking place this week.

Bailey highlighted ongoing concerns about stablecoins, noting that "gaps remain in addressing financial stability risks and few have finalised regulatory frameworks for global stablecoin arrangements."

He specifically warned about the potential for "regulatory arbitrage" in this space.

The FSB plans to conduct "open and frank discussions among members" regarding next steps and will "increase outreach to the private sector to benefit from their expertise and perspectives on risks and vulnerabilities," according to Bailey’s letter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.