Andrew Bailey, who has long expressed skepticism toward cryptocurrencies, has been unanimously appointed to lead an international organization that oversees the global financial system.
The Governor of the Bank of England, Andrew Bailey, recognized for his cautious and often critical stance on digital currencies, will begin his role as Chair of the Financial Stability Board in July. His appointment received unanimous backing from this vital global institution responsible for influencing cross-border financial regulations. He will officially start his three-year term on July 1, following the formal confirmation process in June.
Based in Switzerland, the Financial Stability Board works to maintain oversight of the worldwide financial system. Established in the wake of the 2009 financial crisis, it aims to unite nations in monitoring markets and proposing regulations for banks, insurers, asset managers, and, more recently, cryptocurrency companies as well.
In a statement released by the organization, Bailey remarked that his new role comes during a time when “the stability of the financial system is being tested,” according to reports.
He also highlighted that the global financial crisis “emphasized the necessity of tackling challenges in a collaborative manner and fortifying the multilateral framework,” asserting that the Financial Stability Board “embodies this philosophy.” Bailey will succeed Klaas Knot, the current leader and president of the Dutch central bank.
Bailey’s stance on cryptocurrency
Bailey has been at the helm of the Bank of England since March 2020. Prior to this, he led the Financial Conduct Authority, the UK’s primary financial regulatory body. While he has been an influential figure in UK financial oversight for years, his critical perspective on cryptocurrencies has frequently drawn attention.
For instance, in early 2024, when Bitcoin surged beyond $40,000, Bailey voiced skepticism regarding cryptocurrencies like Bitcoin, stating that BTC is “not emerging as a key financial service.” He has described Bitcoin as “inefficient” and has not demonstrated much enthusiasm for its everyday use.
“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
When it comes to stablecoins, his viewpoint is somewhat more nuanced but still remains cautious. In February 2025, Bailey indicated that stablecoins “must meet rigorous standards” before becoming mainstream, emphasizing the importance of strict regulatory frameworks to safeguard consumers and the financial system.
Bailey has also addressed the topic of central bank digital currencies, such as a possible digital pound, questioning their necessity and noting in a February 2024 address at the Chicago Booth Business School that the banking sector must consider “why we need to implement central bank digital currencies to achieve those benefits.”
He cautioned that a digital pound should not “undermine the role of commercial banks,” stressing that this concern is essential for the overall functionality of the financial system.
Implications for the future
As Bailey steps into the leadership role at the Financial Stability Board, he won’t have unilateral authority over policy decisions. However, given the FSB’s significant involvement in establishing global standards, particularly on emerging subjects like cryptocurrencies, his critical perspective on crypto might start to gain more influence.
The FSB has already been focusing on digital assets. In 2023, it released new guidelines outlining how countries should regulate stablecoins and crypto platforms. At that time, the body called for “comprehensive and consistent regulation and supervision of crypto-asset activities and markets.”
With Bailey now as chair, he is likely to impact how international standards evolve, especially regarding crypto enterprises. Nonetheless, in light of his previous comments, there may be a stronger focus on consumer protection, regulation, and financial stability. His concerns surrounding the utility and risks of cryptocurrencies may also influence how conservative the FSB approaches future initiatives.
However, it remains uncertain to what extent his individual views will dictate the agenda, as the FSB operates on a consensus basis, with decisions often resulting from extensive discussions involving central banks, finance ministries, and regulators from numerous countries, rather than being driven by a single person.