Learning to Live with Crypto
Learning to live with Crypto, co-written with Andreas Dombret—and published by the LSE’s Systemic Risk Centre (SRC), lands at a timely moment. In a Financial Times piece this week, Bank of England Governor Andrew Bailey asked, “how do we ensure the link between money (in whatever form) and credit creation as an underpinning for economic activity?” We take up that question—and more.
Money, Not Crypto: The BoE’s Systemic Stablecoin Blueprint
The Governor of the Bank Of England, Andrew Bailey in the FT sets out a systemic stablecoin regime that is open to innovation but anchored in money-like standards. The Bank of England’s three tests are clear: (1) risk-free backing assets; (2) deposit-style protection—insurance and a statutory resolution placing holders as preferred creditors; and (3) direct, uniform 1:1 convertibility into fiat, not reliant on crypto exchanges.
Crypto Isn’t Replacing Fiat — But It’s Changing Everything
Crypto doesn't need to win to matter. It just needs to persist — and it has. This future, where crypto and fiat coexist uneasily, is not a footnote in monetary history. It's the battlefield. And what’s at stake isn’t just which currency we use — it’s who gets to decide. The question now is whether policymakers are ready to govern it — before it governs them.
Industry groups: new crypto law has a ‘loophole’ that could cost banks
Banks are feigning surprise at yield on stablecoins. US banks are warning that the new GENIUS Act could trigger trillions in deposit outflows, since it bars stablecoin issuers from paying yield but allows crypto exchanges to keep offering rewards on third-party coins.
Wall Street's dramatic reversal on cryptocurrency
Behind Wall Street's sudden embrace of cryptocurrency lies a troubling reality: major banks are rushing into digital assets despite serious risks to both their stability and consumer protections, according to nine financial executives briefed on their organizations' crypto initiatives.
How stablecoins feed global USD demand
Scott Bessent must be happy. A new IMF study finds that stablecoins boost dollar demand. As a % of GDP, the largest users are Latin America & Caribbean (7.7%) and Africa & Middle East (6.7%)
Why stablecoins are Silicon Valley's Pandora's box
Despite piggybacking on the dollar and often sharing the same blockchain, out of the box their smart contracts remain stubbornly non-interoperable and therefore non-fungible.
Each coin is a brand—and combined with the network effects inherent in money itself, winner-takes-all dynamics emerge. Already, two giants rule: Tether commands a $159 billion market capitalisation - 61% of the market - while Circle's USD Coin holds $62 billion or 24%.