BoE’s Andrew Bailey Nominated to Lead G20-Crypto Supervisor FSB

Bank of England (BoE) governor Andrew Bailey has been nominated to be the next chair of the G20’s financial overseer, the Financial Stability Board (FSB).

The FSB’s Nomination Committee agreed to recommend that Bailey take on the role for a three year term from the beginning of July, it said in a statement on Monday.

The Group of Twenty (G20) tasked the FSB with coordinating the delivery of a regulatory framework for crypto-assets. In July 2023, the FSB finalised its recommendations for the regulation of crypto-assets and global stablecoin arrangements, “which have characteristics that may make threats to financial stability more acute,” the body’s website said.

Bailey is currently chair of the FSB’s Standing Committee on Supervisory and Regulatory Cooperation. In this position Bailey oversaw the development of the FSB’s global regulatory framework for crypto-asset activities and the crypto-asset implementation roadmap.

“Andrew has a proven track record of fostering collaboration, having led recent key FSB reform initiatives, including on crypto-assets and non-bank financial intermediation,” Klaas Knot, President of De Nederlandsche Bank and Chair of the FSB, said in the statement. “This positions him well to guide the FSB forward, with a focus on ensuring the successful implementation of agreed reforms.” Knot’s term as FSB chair will end in June.

Since Bailey became governor of the BoE in 2020, the central bank has led a host of crypto and digital work. The BoE is currently exploring a digital pound and is looking to regulate stablecoins – tokens tied to other assets – that could affect financial stability. Last year it said it would carry out a series of central bank digital currency and distributed ledger experiments.