Andrew Bailey Appointed to Lead Global Financial Oversight Body
Andrew Bailey, the Governor of the Bank of England and a well-known critic of cryptocurrencies, has been unanimously appointed as the Chair of the Financial Stability Board (FSB), an international organization that monitors the global financial landscape. His new role will officially commence on July 1, following the completion of formal appointment procedures in June. The FSB, headquartered in Switzerland, was established in 2009 in response to the financial crisis and aims to foster cooperation among nations to oversee markets and propose regulations that govern banks, insurers, asset managers, and, more recently, cryptocurrency entities.
Bailey’s Skeptical Stance on Cryptocurrency
Having taken the helm of the Bank of England in March 2020, Bailey previously led the Financial Conduct Authority, the primary financial regulatory body in the UK. Throughout his career, he has been vocal about his skepticism towards cryptocurrencies. Notably, during a Bitcoin surge in early 2024 that saw its price exceed $40,000, he expressed doubts about the viability of cryptocurrencies like Bitcoin, labeling it as “inefficient” and asserting that it hasn’t achieved significant integration into the mainstream financial system. He remarked, “It’s not taking off as a core financial service. For instance, using Bitcoin for payments is quite inefficient. Therefore, I don’t believe the financial system has kept pace with the once-anticipated momentum.”
Bailey’s Views on Stablecoins and Digital Currencies
While Bailey’s perspective on stablecoins is somewhat more tempered, he maintains a cautious approach. In February 2025, he indicated that for stablecoins to gain widespread acceptance, they must meet stringent regulatory standards to safeguard consumers and the broader financial framework. Furthermore, he has commented on central bank digital currencies (CBDCs), including a potential digital pound, questioning their necessity. During a February 2024 presentation at the Chicago Booth Business School, he urged the banking sector to critically evaluate the reasons for introducing CBDCs to ensure they do not disrupt the essential functions of commercial banks.
Potential Impact on Global Crypto Regulations
As Bailey steps into his role at the FSB, he will not have unilateral authority over policy decisions. However, given the FSB’s significant influence in establishing global norms—especially concerning emerging sectors like cryptocurrencies—his skeptical stance on digital currencies may gain more prominence. The FSB has already made strides in addressing digital assets, having released guidelines in 2023 that outline how nations should regulate stablecoins and cryptocurrency platforms. With Bailey at the helm, it is anticipated that there will be an increased focus on consumer protection, regulatory oversight, and financial stability in relation to crypto businesses. Nevertheless, the extent to which his personal views will shape the agenda remains uncertain, as the FSB operates on a consensus-based model, where decisions emerge from extensive discussions among central banks, finance ministries, and regulators from numerous countries rather than being dictated by any single individual.
