The Bank of England’s £20 billion ($27.3 billion) corporate bond purchase program, aimed at lowering borrowing costs and boosting bond issuance, has failed to deliver the expected results, as revealed by the central bank’s own research. Despite the substantial investment, the primary market saw no significant increase in bond issuance, and borrowing costs remained unaffected. This outcome challenges the efficacy of large-scale bond purchases as a tool for economic stimulus and may prompt a reevaluation of similar monetary policies in the future.
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2 in Finance and 0 in Crypto last week
BoE Warns Stablecoins Threaten Public Trust in Money
Bank of England Governor Andrew Bailey has issued a stark warning about the rise of stablecoins, cautioning that their increasing adoption could undermine public trust in conventional money. Financial experts have also flagged potential systemic risks posed by dollar-pegged cryptocurrencies, which could destabilize monetary systems. The remarks highlight growing regulatory scrutiny over stablecoins as they blur the lines between traditional finance and decentralized digital assets.
read moreKadena Funds UK Startup in Bank of England’s Digital Sandbox
Kadena has deployed the first $400,000 grant from its $50 million ecosystem fund to CurveBlock, a UK startup pioneering tokenized real estate in the Bank of England’s Digital Securities Sandbox (DSS). The DSS, a joint effort by the Bank of England and the Financial Conduct Authority, allows blockchain-based financial instruments to operate under relaxed regulatory constraints until 2028. Kadena’s grant program, half of which is dedicated to real-world asset (RWA) tokenization, aims to bridge public blockchain infrastructure with institutional demand for compliant solutions. CurveBlock’s acceptance into the DSS and Kadena’s support signal a pivotal moment for tokenized real estate, with the global RWA market cap surging 260% to $23 billion. The project could influence regulatory frameworks in the UK, US, and EU, as major institutions like Goldman Sachs and BlackRock explore tokenized securities.
read moreNigel Farage Pledges Pro-Crypto Reforms if Elected UK PM
Nigel Farage, leader of the UK’s Reform Party, announced at Bitcoin 2025 in Las Vegas his commitment to passing the ‘Crypto Assets and Digital Finance Bill’ if elected prime minister. The bill proposes reducing crypto capital gains taxes to 10%, mandating the Bank of England to hold Bitcoin reserves, and banning banks from denying services to crypto users. Farage linked his personal debanking experience to crypto’s appeal, framing his party as anti-establishment disruptors. The Reform Party now accepts crypto donations in BTC, ETH, SOL, and USDC, aligning with global right-wing trends in crypto adoption.
read moreFarage Vows UK Crypto Hub & CBDC Ban if Elected
Nigel Farage, leader of the UK’s Reform Party, announced plans to position the country as a leading crypto hub if his party wins the next general election. Key proposals include introducing the Crypto Assets and Digital Finance Bill, rejecting a CBDC, and accepting cryptocurrency donations—a groundbreaking move in British politics. Farage cited data showing 10% of the UK population holds crypto, with younger demographics driving adoption, and criticized the current government for lagging in crypto regulation. He also highlighted the UK’s significant Bitcoin holdings (61,245 BTC) and aims to rival the US and China in crypto dominance. The announcement, made at the Bitcoin Conference in Las Vegas, signals a pro-crypto agenda contrasting with traditional parties.
read morePowell Asserts Fed’s Non-Political Stance Amid Trump Criticism
Federal Reserve Chair Jerome Powell met with President Donald Trump after the White House criticized the Fed’s monetary policy decisions. The Fed clarified that Powell did not discuss future interest rate moves with Trump but reiterated that policy decisions are data-driven and apolitical. Trump has frequently accused Powell of being too slow to cut rates, comparing him unfavorably to other central banks. Powell stressed that the Fed’s mandate is to support maximum employment and stable prices through objective analysis, independent of political pressure. The meeting highlights ongoing tensions between the Trump administration and the Fed over monetary policy.
read moreNY Launches Bitcoin Bonds, Scraps BitLicense for Crypto Revival
New York has announced plans to issue ‘BitBond,’ the first Bitcoin-backed municipal bonds, signaling a major shift in public finance. Mayor Eric Adams revealed the initiative at the Bitcoin 2025 conference, positioning Bitcoin as ‘the next evolution of money.’ Concurrently, the city is scrapping the BitLicense, long criticized for stifling crypto innovation. Adams also outlined blockchain applications for birth records, taxes, and fines, urging crypto talent to return to New York. Internationally, the NYDFS and Bank of England are collaborating under the Transatlantic Regulatory Exchange to align digital asset policies. These reforms aim to revitalize New York’s crypto ecosystem while setting a regulatory precedent.
read moreUK FCA Proposes New Stablecoin and Crypto Custody Rules
The UK’s Financial Conduct Authority (FCA) has opened a consultation on draft regulations for stablecoin issuers and cryptocurrency custody providers, marking a key step in the country’s crypto regulatory framework. The proposals, shaped by industry input, seek to foster innovation while ensuring market integrity. The FCA will collaborate with the Bank of England, which plans to release additional guidance for systemic stablecoins later this year. This move underscores the UK’s commitment to structured crypto oversight amid growing adoption.
read moreRipple Eyes UK Expansion Amid Crypto Regulatory Shifts
Ripple’s Managing Director for the UK and Europe, Cassie Craddock, has emphasized the UK’s potential to become a leading global hub for digital assets, citing regulatory progress and a ‘second-mover advantage.’ However, over 50% of UK crypto firms face banking access issues, hindering growth. Ripple is optimistic about expansion, but industry leaders like Coinbase UK’s Keith Grose warn delays in regulation could drive innovation elsewhere. Stablecoin regulation remains unclear, with ClearBank’s Mark Fairless noting the lack of a definitive framework from the Bank of England. Despite challenges, Ripple remains bullish on the UK’s crypto future.
read moreUK Drafts Crypto Rules to Boost Innovation & Oversight
The UK government has unveiled draft legislation to bring cryptocurrency exchanges, dealers, and agents under a comprehensive regulatory framework, effective January 31. Finance Minister Rachel Reeves emphasized that the rules aim to crack down on bad actors while supporting legitimate innovation, aligning with the UK’s ‘Plan for Change’ to become a financial innovation hub. The legislation includes measures like exempting overseas stablecoins and launching the Digital Securities Sandbox (DSS), a collaboration between the Bank of England and the Financial Conduct Authority. The UK is also engaging with the U.S. on regulatory coordination, though its approach diverges in key areas. Meanwhile, Bitcoin’s price remains volatile, trading around $95,082 amid growing institutional demand.
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