Bailey’s BoE Charts New Course: Embracing Stablecoins with Pragmatic Exemptions

Under Governor Andrew Bailey, the Bank of England is signaling a more pragmatic approach to digital currencies by planning exemptions to its proposed stablecoin caps.

This shift in strategy, which includes allowing stablecoins for settlement in sandbox environments, aligns with Bailey’s recent public stance that it is “wrong” to oppose stablecoins on principle.

The planned waivers for exchanges and corporations address key industry concerns and represent a calculated effort to foster innovation while maintaining oversight, as the UK positions itself in a global regulatory race led by the US.