Widely-used stablecoins need to be regulated like money, BoE's Bailey says

Core Viewpoint - The Bank of England Governor Andrew Bailey emphasizes that stablecoins widely used as payment in Britain should be regulated like traditional money, requiring depositor protections and access to Bank of England reserve facilities [1][2]. Regulation and Consultation - Bailey announced that the Bank of England will publish a consultation paper on stablecoins in the coming months, outlining that widely used UK stablecoins should have access to accounts at the Bank of England to reinforce their status as money [2][5]. Stablecoins and Banking System - The possibility of banks and stablecoins coexisting is raised, with non-banks potentially taking on more credit provision roles, although this shift requires careful consideration [3][4]. - Stablecoins are digital tokens designed to maintain a constant value, often backed by traditional assets like the U.S. dollar or government debt, and their popularity is expected to rise following the U.S. GENIUS Act [3][4]. Risk and Protections - Bailey stated that stablecoins should be risk-free, backed by insured assets, and easily exchangeable for cash without relying on cryptocurrency exchanges [5].