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"Andrew Bailey is a rare voice of reason in a world often swept up by crypto-mania"

ended 16. July 2025

Bank of England governor Andrew Bailey has won backing from financial and political commentators after warning against the rush toward cryptocurrencies and questioning the need for a digital pound.

In his Mansion House speech, Bailey said there is “an urgent need for innovation” in payments – but poured cold water on the idea that the future lies in crypto.

“There may well be a role for stablecoins going forward, but I don’t see them as a substitute for commercial bank money,” he said. “Our job will be to ensure that those stablecoins that purport to be money are safe… Perhaps there may also be a role for retail central bank digital currency, but I remain to be convinced why the natural next step is to create a new form of money rather than put digital technology into retail payments and bank accounts.”

Gabriel McKeown, Political & Economics Writer at the Sad Rabbit Substack Newsletter, said: “Crypto fever is certainly over in the City. In a blow to crypto enthusiasts, the governor’s latest speech insisted that stablecoins will not be a substitute for commercial bank money, a far more sceptical outlook than some fintech lobbyists might have hoped for.

“This has firmly put to bed the potential for a flashy new digital pound anytime soon, with Bailey insisting that the current system simply needs to be digitalised. It is, of course, encouraging to see a forward-thinking approach to innovation being taken by Threadneedle Street; however, this decision will pit the UK against many other nations in its tacit rejection of digital currencies.

“Only time will tell whether Bailey’s plan to overhaul ageing payment pipes in favour of a sleek digital alternative was the work of a steady hand in an age of overexcitement, or another missed opportunity which will force all Britons to transact in digital Dollars for the rest of eternity.”

Sean Horton, Managing Director at Respect Mortgages, said: “Andrew Bailey's latest comments show the Bank of England won't be rushing into crypto experiments. Thank goodness for that. Whilst acknowledging stablecoins might serve a purpose, he's clear they won't replace traditional banking.

“Most cryptocurrencies lack proper asset backing or government guarantees. And it's misleading to refer to cryptocurrency as investing. Rather than chasing fashionable monetary innovations without substance, Bailey wants proof of genuine benefits. Why reinvent money when we can digitise what already works?”

Samuel Mather-Holgate, Independent Financial Adviser at Mather and Murray Financial, added: “Bailey is a Luddite when it comes to crypto, but he has a point on central banks holding it. Crypto is backed by no government or asset of intrinsic value, so is unique in calling itself a currency when it’s more akin to a commodity.

“His sentiment on macro economic institutions is a view held by many in the establishment, but we won’t see a return to the norm until Trump leaves the White House.”

Scott Gallacher, Director at Rowley Turton, also welcomed the remarks:
“Andrew Bailey is a rare voice of reason in a world often swept up by crypto-mania. He rightly sees the need for innovation in payments but is cautious about jumping into crypto or stablecoins as the answer.

“Improving existing systems is likely a safer and more sensible approach, rather than creating entirely new forms of money that could risk financial stability. Unfortunately, politicians tend to favour newer and shiny ideas like crypto over sensible but boring solutions.”

Bailey’s speech also urged the restoration of multilateral institutions and greater international coordination, warning that the current global economic system remains under strain.

6 responses from the Newspage community

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David Belle
Founder and Trader at Fink Money
I had to send half a million sterling to the Phillipines to get a grounded cargo plane flying. Doing this in fiat would have taken days for the transaction to settle. It was costing the client about £20k per day in insurance and staff while the plane couldn’t fly. In 3 hours we managed to do the payment in USDT, via a regulated financial institution and get the plane flying. If Bailey has a good way of doing cross border payments with that speed then I am all ears.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
Bailey is a Luddite when it comes to crypto, but he has a point on central banks holding it. Crypto is backed by no government or asset of intrinsic value, so is unique in calling itself a currency when it’s more akin to a commodity. His sentiment on macro economic institutions is a view held my many in the establishment, but we won’t see a return to the norm until Trump leaves the White House.
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Editor
Scott Gallacher
Director at Rowley Turton
Andrew Bailey is a rare voice of reason in a world often swept up by crypto-mania. He rightly sees the need for innovation in payments but is cautious about jumping into crypto or stablecoins as the answer. Improving existing systems is likely a safer and more sensible approach, rather than creating entirely new forms of money that could risk financial stability. Unfortunately, politicians tend to favour newer and shiny ideas like crypto over sensible but boring solutions.
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Editor
Gabriel McKeown
Political & Economics Writer at Sad Rabbit - Substack Newsletter
Crypto fever is certainly over in the City. In a blow to crypto enthusiasts, the governor’s latest speech insisted that stablecoins will not be a substitute for commercial bank money, a far more sceptical outlook than some fintech lobbyists might have hoped. This has firmly put to bed the potential for a flashy new digital pound anytime soon, with Bailey’s insisting that the current system simply needs to be digitalised. It is, of course, encouraging to see a forward-thinking approach to innovation being taken by Threadneedle Street; however, this decision will pit the UK against many other nations in its tacit rejection of digital currencies. Only time will tell whether Bailey’s plan to overhaul ageing payment pipes in favour of a sleek digital alternative was the work of a steady hand in an age of overexcitement, or another missed opportunity which will force all Britons to transact in digital Dollars for the rest of eternity.
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Editor
Tony Redondo
Founder at Cosmos Currency Exchange
Andrew Bailey’s Mansion House speech addresses navigating global economic shifts and modernizing payments. He urges strengthening multilateral institutions like the IMF to tackle trade disruptions and imbalances. Bailey sees an urgent need for payment innovation, particularly in cross-border systems, but is cautious about stablecoins, emphasizing they are not a substitute for bank money and must be safe. He questions the necessity of a retail CBDC, favouring digital upgrades to existing systems over new money forms. UK GDP grew 0.7% in Q1 2025, but Bailey anticipates slower growth due to global uncertainties. His approach balances financial stability with gradual innovation.
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Sean Horton
Managing Director at Respect Mortgages
Andrew Bailey's latest comments show the Bank of England won't be rushing into crypto experiments. Thank goodness for that. Whilst acknowledging stablecoins might serve a purpose, he's clear they won't replace traditional banking. Most cryptocurrencies lack proper asset backing or government guarantees. And it's misleading to refer to cryptocurrency as investing. Rather than chasing fashionable monetary innovations without substance, Bailey wants proof of genuine benefits. Why reinvent money when we can digitise what already works?