Bank of England Endorses Stablecoins as Money, Plans BoE Account Access

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October 3, 2025

The Bank of England has moderated its stance on stablecoins, with Governor Andrew Bailey indicating they should be overseen as forms of money—complete with depositor-style protections and potential access to central bank reserve facilities—according to Reuters. Bailey had previously warned that stablecoins could drain deposits from traditional banks and pose broader risks to financial stability by diverting funds out of the banking system.

Bailey now says it would be “wrong to be against stablecoins as a matter of principle,” adding that the Bank of England intends to publish a paper outlining its approach to the sector. “In doing so, we will set out that widely used UK stablecoins should have access to accounts at the BoE in order to reinforce their status as money,” he said, signaling that stablecoin issuers could be allowed to hold reserves directly with the central bank under a defined framework. He also suggested coexistence is achievable, with banks and stablecoin issuers operating in parallel and “non-banks carrying out more of the credit provision role.”

Skepticism remains among other financial industry leaders. Rob Nichols, president and CEO of the American Bankers Association, cautioned that stablecoins may “risk disintermediating core banking activity like deposit taking and lending,” underscoring concerns that widespread adoption could shift key functions away from regulated banks.

The renewed policy momentum around stablecoins has been shaped in part by developments in the United States. The GENIUS Act, signed into law by Trump in July, establishes regulatory guidelines for stablecoins, providing a clearer legal framework that supporters say could encourage innovation while setting baseline safeguards. Stablecoins—cryptoassets designed to maintain a stable value, often by being pegged to a fiat currency—remain a focal point of debate as regulators seek to balance competition and consumer protection with financial stability.