Andrew Bailey, governor of The Bank of England, has made comments suggesting he's on board with digital assets playing a greater role in Britain's financial system.
Comments, via a weekend report in the Financial Times, Bailey, indicate the BoE may shift in its stance on stablecoins (following a similar recent move across the Atlantic).
Bailly said it would be “wrong to be against stablecoins as a matter of principle”, noting their potential to support innovation in domestic and cross-border payments.
The BoE governor did, however, acknowledge the need for stablecoins to meet the same high standards as traditional money.
He also described a potential future where money and credit provision could be separated, with banks and stablecoins coexisting.
“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,” Bailley told the FT.