Bank of England Governor Andrew Bailey stated on Wednesday that progress on international standards for stablecoins has slowed over the past year. Bailey, who also chairs the Financial Stability Board, emphasized the need for global rules to ensure 'assured value' - the confidence that stablecoins can always be redeemed at face value.
"I don't think we can have a situation where we've got different rules of engagement in different countries for that," Bailey said.
Major economies like Britain and the United States are developing domestic regulations for stablecoins, aiming to leverage the technology while mitigating financial stability risks. International standards are considered crucial to prevent regulatory arbitrage, where firms exploit differing rules across jurisdictions.