Andrew Bailey has commented that stablecoins must be regulated as the idea gains popularity.
The governor warns that global regulators must set standards early.
He says that being prepared will help reduce risk and promote innovation.
Stablecoins are increasingly being viewed as an alternative to fiat, especially as Facebook’s Libra project gathers momentum.
What does this mean?
Bailey has discussed how stablecoins could soon be widely used across the world, but says if this is the case they will be they must be regulated in the same way as other means of payment.