Andrew Bailey, a long-time skeptic of crypto, has been unanimously chosen to steer a world physique that screens the worldwide monetary system.
Financial institution of England Governor Andrew Bailey — identified for his cautious, typically skeptical views on crypto — is ready to take over as Chair of the Monetary Stability Board in July, after securing unanimous help from the worldwide physique that helps form monetary guidelines throughout borders. Bailey will start his three-year time period on July 1, after the formal appointment is finalized in June.
The Switzerland-based FSB helps hold the worldwide monetary system in test. Arrange in 2009 after the monetary disaster, it seeks to deliver nations collectively to keep watch over markets and counsel guidelines that information banks, insurers, asset managers, and, extra lately, crypto corporations too.
In an announcement shared by the FSB, Bailey mentioned his appointment comes at a time when the steadiness of the monetary system “is put to the test,” Bloomberg reviews.
He additionally famous that the worldwide monetary disaster “underscored the importance of addressing challenges collectively and strengthening the multilateral system,” stressing that the FSB “exemplifies this approach.” Bailey will exchange Klaas Knot, who at the moment leads the group and is the president of the Dutch central financial institution.
Bailey isn’t a buddy to crypto
Bailey has led the Financial institution of England since March 2020. Earlier than that, he served as the top of the Monetary Conduct Authority, the British foremost monetary watchdog. Whereas he’s been a central determine in U.Okay. monetary regulation for years, his views on crypto and digital currencies have typically made headlines.
For example, in early 2024, when Bitcoin was climbing previous $40,000, Bailey expressed doubts about cryptocurrencies like BTC, saying BTC is “not taking off as a core financial service.” He additionally referred to as Bitcoin “inefficient” and has not proven a lot help for its use in on a regular basis finance.
“It’s not taking off as a core financial service. For example, using Bitcoin as a payment service is pretty inefficient. So I don’t think the integration into the financial system has kept up the momentum that was once there. But we have to keep a very close eye on it.”
Andrew Bailey
On stablecoins, his place is barely extra measured, although nonetheless cautious. In February 2025, Bailey steered that stablecoins “must meet a high bar” earlier than going mainstream, emphasizing that they need to adhere to robust regulatory requirements to guard shoppers and the monetary system.
Bailey has additionally addressed central financial institution digital currencies, like a possible digital pound, elevating questions on their necessity and stating in a February 2024 speech on the Chicago Sales space Business Faculty that the banking business should ask “why we need to introduce central bank digital currencies to achieve those benefits.”
He additionally warned {that a} digital pound shouldn’t “undermine the role of commercial banks,” emphasizing that this concern is essential to making sure the monetary system features correctly as an entire.
Future implications
With Bailey taking on as head of the FSB, he received’t have full management over coverage, however for the reason that FSB has a serious position in setting international requirements — particularly on rising points like crypto — his anti-crypto views may, in principle, begin carrying extra weight.
The FSB has already centered on digital property. In 2023, it revealed new tips for a way nations ought to oversee stablecoins and crypto platforms. Again then, the worldwide physique already referred to as for “comprehensive and consistent regulation and oversight of crypto-asset activities and markets.”
As the brand new chair, Bailey will seemingly have an affect on how international requirements develop, notably in relation to crypto companies. Nonetheless, given his previous statements, there may very well be a higher emphasis on robust client safety, regulation, and monetary stability. His considerations about crypto’s usefulness and dangers can also change how cautious the FSB turns into in future work.
Nonetheless, it stays unclear how a lot of his private views will form the agenda. In spite of everything, the FSB is a consensus-based physique, and choices are sometimes the results of lengthy discussions amongst central banks, finance ministries, and regulators from dozens of nations, moderately than being formed by one particular person.
