As the adoption of stablecoins slowly takes over, stewardship and proper regulation become a priority to maintain economic harmony. Bank of England (BOE) Governor Andrew Bailey seems to think the same. Bailey has cautioned that the adoption of digital currencies, including stablecoins, could upset the economic applecart if proper regulation isn’t implemented. Per remarks given during his speech at the Andrew Crockett Memorial Lecture on 3 July 2025, the nature of reserve currency has evolved. The monetary world has moved on from the earlier definition of a reserve currency as a fixed monetary anchor to an increasing reliance on secure, liquid assets such as the US Treasuries, and the central bank’s supply of liquidity as and when needed. “First, at least for the large economies, it could be asked today, what is the point of official reserves?” he said. Bank of England Governor Andrew Bailey says Stablecoins could cut people's trust in Money if they grow too popular. “They may be needed to support financial system liquidity in situations of extreme stress,” he said.https://t.co/7xPPVWTSXU #BoE #Stablecoins #Crypto — Budgetrend (@budgetrend) July 3, 2025 In addition to this, Bailey also put forth the notion of the changing role of reserve currency, explaining how it has moved from backing currency convertibility to preserving financial stability as capital circulates in and out of a country. Bailey cautioned, “Central banks need to carefully examine payment innovation based on stablecoins.” Bailey, soon to lead the Financial Stability Board, has previously flagged potential threats regarding stablecoins and plans to address them soon. Explore: Best Meme Coin ICOs to Invest in July 2025 Adoption of Stablecoins Could Cause Digital Dollarisation In the wake of the landmark legislation passed by the US Senate normalising the use of stablecoins, Bailey’s warnings come amidst growing concerns related to the wide adoption of the US dollar-backed stablecoin, which could cause digital dollarisation. A striking contrast to this is the US Treasury Secretary Scott Bessant, hailing the stablecoin legislation as a step towards cementing the dollar’s reserve currency status worldwide, amidst concerns regarding the erosion of trust in the greenback’s reserve currency status. “We need to watch carefully the evolution of payment forms and whether innovation here introduces fragility into what I would call the ‘money system,” said Bailey. He went on to point out during his lecture the need for authorities to carefully monitor any changes made to the structure of money, such as the introduction of privately issued stablecoins, that help mitigate any detrimental effects on monetary trust. “If, for instance, stablecoins emerge as a new form of money, we have to decide how to ensure the singleness of money and therefore trust in money in this world, and what role the notion of reserve currency should play here,” he said. He added, “The rise of stablecoins could raise questions about the purpose of official foreign reserves in major advanced economies today.” Explore: 10+ Crypto Tokens That Can Hit 1000x in 2025 “Central banks could face the heat if stablecoins become a widely used form of payment without proper regulations” Bailey mentioned that authorities should make efforts to clarify the role of reserve currencies since advancements in payment technologies might avoid traditional oversight. Some analysts are of the opinion that the adoption of stablecoins without global coordination could split the financial system. Without regulations in place, privately issued tokens might circulate outside central control, making it harder to manage economies and keep cross-border finance stable. Authorities are currently reviewing how stablecoins can remain reliable and legally compliant as questions arise regarding the inclusion of stablecoins into the financial monetary system or their existence outside of it. Explore: 9+ Best High-Risk, High-Reward Crypto to Buy in July 2025 Key Takeaways

• The role of a reserve currency has changed from backing currency convertibility to preserving financial stability


• Authorities should carefully monitor any changes made to the structure of money to mitigate any detrimental effects on monetary trust


• Some regulators think that stablecoins could potentially split the financial system

Swiss crypto-focused financial institution AMINA Bank announced providing custody and trading services for Ripple’s RLUSD stablecoin.  On 3 July 2025, the Swiss FINMA (Financial Market Supervisory Authority) regulated crypto bank said in a press release, “Custody and trading services will be available to AMINA clients holding RLUSD, establishing a foundation for expanded services in the coming months.” Commenting on the development, Myles Harrison, Chief Product Officer of AMINA Bank said, “We are proud to be the first bank to support RLUSD and to provide our clients with access to one of the most anticipated digital assets in the market.” JUST IN: SWISS-BASED AMINA BANK BECOMES THE FIRST GLOBAL BANK TO SUPPORT @RIPPLE’S NEW STABLECOIN $RLUSD – COINDESK BULLISH #XRP pic.twitter.com/E0eHFAaH7X — Amonyx (@amonbuy) July 3, 2025 “Ripple’s commitment to transparency and compliance make them ideal collaborators as we continue our mission to expand institutional-grade digital asset services,” Harrison added. DISCOVER: Best Meme Coin ICOs to Invest in Today AMINA is Targeting Institutional Clients, Professional Investors  Furthermore, AMINA intends to broaden its RLUSD-related services in the coming months. This reflects growing demand for digital assets in the financial sector. Importantly, Switzerland has long positioned itself as a global leader in crypto innovation, with Zug often being called “Crypto Valley.” AMINA Bank’s CEO commented, “Our goal is to bridge the gap between traditional banking and the emerging world of digital assets, providing our clients with secure, regulated access to innovative financial instruments.”  Hence, the bank pioneering the Ripple stablecoin could prompt other Swiss and international banks to follow the lead.  DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025 Ripple Files for US Banking License for XRP and RLUSD Ripple is making power moves ➤ $XRP breaks multi-month downtrend ➤ $RLUSD backed by Amina Bank ➤ Ripple applies for U.S. bank charter XRP is becoming part of the U.S. banking system. pic.twitter.com/0AK9cdIb9F — ALexia (@Alex1i9) July 4, 2025 Notably, the company behind XRP has applied for a national banking charter in the US, aiming to bring its RLUSD stablecoin under direct federal oversight. This isn’t just about checking boxes. It’s a strategic attempt to give RLUSD a stronger foundation. It could also open the door to a deeper role in the financial system. If approved, the Ripple banking license would allow the company to hold RLUSD reserves directly with the Federal Reserve. Ripple’s CEO, Brad Garlinghouse, confirmed the application publicly, pointing out that RLUSD already operates under New York’s financial regulators. Getting a national charter through the Office of the Comptroller of the Currency (OCC) would expand that coverage, blending state-level approval with federal credibility. It’s also a signal to investors, regulators, and institutions that Ripple wants RLUSD to be taken seriously. Read more: Ripple Files for US Banking License for XRP and RLUSD Key Takeaways