2025-10-01 10:25

BoE to consult on regulation for stablecoins, as industry grows Bailey strikes slightly more conciliatory tone on stablecoins after warnings Crypto industry concerned about BoE's more cautious stance LONDON, Oct 1 (Reuters) - Any stablecoin that becomes widely used as a means of payment in Britain needs to be regulated like money in a standard bank, Bank of England Governor Andrew Bailey said on Wednesday, meaning it would need depositor protections and access to BoE reserve facilities. The comments made in an article in the Financial Times newspaper represent a slight shift in tone by Bailey, a long-standing sceptic of cryptocurrencies. Sign up here. He said it would be "wrong to be against stablecoins as a matter of principle", but he also said their main current use as a way to enter and exit cryptocurrency trades did not amount to a standard money-like means of payment. Bailey confirmed the BoE would publish a consultation paper on stablecoins in the coming months. "In doing so, we will set out that widely used UK stablecoins should have access to accounts at the BoE in order to reinforce their status as money," he said. He also raised the possibility of "banks and stablecoins coexisting and non-banks carrying out more of the credit provision role", but said that such a shift would need careful consideration. Stablecoins are digital tokens designed to keep a constant value. They are often backed by traditional assets such as the U.S. dollar or government debt. They have surged in popularity and their demand is expected to increase further after the U.S. passed its GENIUS Act in July that sets federal rules for stablecoins. In an interview with The Times newspaper, also in July, Bailey said the technology risked pulling money out of the banking system and undermining credit creation. Crypto industry figures have expressed concern about the BoE's caution and say issues include caps on stablecoin holdings the BoE has proposed, the share of backing assets eligible to earn interest, and the criteria the BoE will use to determine which stablecoins fall under its remit. In Wednesday's article, Bailey said stablecoins should be risk-free with backing assets, protected by insurance and resolution schemes, and readily exchangeable for cash without relying on crypto-currency exchanges. https://www.reuters.com/sustainability/boards-policy-regulation/widely-used-stablecoins-need-be-regulated-like-money-boes-bailey-says-2025-10-01/

2025-10-01 10:13

MUMBAI, October 1 (Reuters) - The Indian rupee nudged higher on Wednesday in a modest advance that was still enough to notch its best day in two weeks after the Reserve Bank of India kept policy rates unchanged and the dollar slipped broadly as the U.S. government shut down. The rupee closed at 88.69 against the U.S. dollar, up 0.1% on the day, the most since September 17. The rupee hasn't gained in nine out of the last 10 sessions. Meanwhile the dollar slipped to a one-week low against major peers. Sign up here. Though the rupee appeared on course to open below its all-time low of 88.80 early in the session, likely intervention by the central bank helped limit the pressure on the currency, traders said. State-run banks were spotted offering dollars consistently early in the session, most likely on behalf of the RBI, a trader at a large private bank said. The central bank kept its policy rate unchanged on Wednesday, signalling room to lower rates in December as it assesses the impact of domestic tax cuts and punitive U.S. tariffs on the South Asian economy. "We see a gradual depreciation of the INR over the medium term as an appropriate response to external demand risks," analysts at ANZ said in a note. Current projections indicate the possibility of another rate cut in December 2025, the note added. India's benchmark equity indexes, the BSE Sensex (.BSESN) , opens new tab and the Nifty 50 (.NSEI) , opens new tab ended higher by 0.9% each, led by gains in banking stocks (.NSEBANK) , opens new tab after the central bank unveiled a raft of measures to boost bank lending to capital markets and large corporates. The central bank also announced measures to boost the rupee's international usage. Meanwhile, the dollar index was down 0.2% at 97.6 after dipping to a one-week low earlier as a U.S. government shutdown unsettled markets and risked delaying data seen key to gauge the future path of Fed policy rates. Asian currencies were flat to slightly higher. https://www.reuters.com/world/india/rupee-logs-best-day-two-weeks-dollar-droops-rbi-holds-rates-2025-10-01/

2025-10-01 09:59

LONDON, Oct 1 (Reuters) - The pound rose against the dollar on Wednesday, as the U.S. currency came under broad pressure after the government in Washington DC shut down over funding to add to investor caution around U.S. assets. The shutdown carries the risk of delaying key economic reports that filter into the Federal Reserve's decisions to adjust monetary policy. Sign up here. The central bank meets later this month and, should the shutdown persist, could find itself without meaningful official data. With that in mind, investors will use private sector measures for guidance, such as the ADP monthly employment report later on Wednesday. Sterling wrapped up September with a 0.4% loss against the dollar, but is still up 7.7% this year, putting it on course for its strongest showing against the U.S. currency since 2017's 9.5% rally. Against the euro, it has struggled, as the single European currency gained 0.8% last month, bringing the increase for 2025 to 5.6%. LOOKING PAST THE DATA UK data this week has shown the economy virtually stagnated in the second quarter of this year, while the current account deficit blew past expectations in that time to its widest since the start of the year. "Investors appeared willing to look past these figures, given the overriding U.S. narrative. We, however, remain cautious," analysts at Monex said. "Sterling rallies are likely to be capped by domestic headwinds and a Bank of England that we think should be inching toward further easing, especially after the November budget has been delivered." The pound was last up 0.2% on the day at $1.3475, while weakening against the euro, which rose 0.12% to 87.365 pence. British house prices rose slightly faster than expected last month, increasing 0.5% in September after a 0.1% drop in August, major mortgage lender Nationwide Building Society said on Wednesday. According to Nationwide data, Britain's house-price-to-earnings ratio, a key metric of home affordability, is at 5.8, around its worst in a decade. Real wage growth, meanwhile, has slowed to a rate of 1%, from 3.4% a year ago, as inflation has remained sticky, while workers' earnings have increased more modestly. British consumers are struggling with persistent inflation, a high tax burden that could potentially increase with finance minister Rachel Reeves' budget next month, and a weakening labour market. https://www.reuters.com/world/uk/sterling-edges-up-dollar-hobbled-by-us-shutdown-2025-10-01/

2025-10-01 09:14

FRANKFURT, Oct 1 (Reuters) - The European Central Bank will propose reducing the number of capital buffers that banks have to hold and introducing simpler rules for smaller lenders, the ECB's vice-president Luis de Guindos said on Wednesday. De Guindos is leading the ECB's efforts to ease rules for euro zone banks, which have been complaining that they are at a disadvantage to their U.S. peers, particularly given U.S. President Donald Trump's deregulation agenda. Sign up here. "Now, for instance, the number of capital buffers of the European banks is above 10, is very complicated," de Guindos told an event organised by Politico. "We will make a clear recommendation in that regard. Another recommendation will be about proportionality, how... we supervise small banks." The ECB is due to finalise its proposals and send them to European Union legislators by the end of the year. Under its proportionality principle, the ECB aims to tailor its supervisory expectations and reporting requirements for smaller banks to make the process less onerous. Germany's Bundesbank has floated the idea of whittling down the number of requirements to just two and having banks meet them in full with equity and their own funds. In a country where regional and smaller lenders make up nearly half of all banking assets, the Bundesbank is also pushing for a separate regime for "small and non-complex banks". https://www.reuters.com/sustainability/boards-policy-regulation/ecb-backs-fewer-bank-buffers-simpler-rules-small-lenders-de-guindos-says-2025-10-01/

2025-10-01 09:10

Sept 30 (Reuters) - New York Attorney General Letitia James on Tuesday filed a lawsuit and an emergency motion seeking a temporary restraining order against U.S. Secretary of Homeland Security Kristi Noem and the department, accusing them of unlawfully withholding nearly $34 million in funding requested by the state's Metropolitan Transportation Authority (MTA). The MTA is the state agency that operates New York City's subway and buses, as well as commuter rail lines that serve nearby suburbs. Sign up here. In a late Tuesday lawsuit filed in the U.S. District Court for the Southern District of New York James is seeking an emergency order by midnight to safeguard the MTA's funding. The Department of Homeland Security did not immediately respond to a Reuters request for comment. "DHS today cut New York’s award from nearly $34 million to zero – an unlawful decision," her press office said in a statement, adding that James is not seeking disbursement tonight, only preservation of the funds while the courts resolve the case. The move, James said, jeopardizes the safety of millions of New Yorkers. "I am asking the court to act before midnight to stop these funds from vanishing and to ensure that New Yorkers are not put at risk by this administration’s political games," James said. Last month, the U.S. Transportation Department said it may withhold up to 25% of federal transit funding for the MTA if the agency does not improve safety for subway track maintenance workers. https://www.reuters.com/world/us/new-york-ag-james-sues-homeland-security-nearly-34-million-over-transit-funding-2025-10-01/

2025-10-01 08:04

HANOI, Oct 1 (Reuters) - Vietnam's government said Typhoon Bualoi caused an estimated 8 trillion dong ($303 million) of property damage this week, saying in a preliminary assessment on Wednesday that nearly 170,000 houses were damaged or inundated by flooding. Bualoi made landfall on Monday in northern central Vietnam, bringing huge sea swells, strong winds and heavy rains that have killed at least 29 people and left 22 others missing, according to the disaster management agency report. Sign up here. The typhoon severely damaged roads, schools, and offices, and caused power grid failures that left tens of thousands of families without electricity, the report said. More than 34,000 hectares of rice and other crops were destroyed, it said. The report did not mention any major damage to industrial properties. Vietnam is a regional manufacturing hub, and large factories in or near the typhoon's path included some owned by Foxconn, Formosa Plastics, Luxshare and Vinfast. The typhoon triggered floods across Vietnam's north, and disrupted flights and train services with the capital, Hanoi, where schools were closed and many homes inundated. With a long coastline facing the South China Sea, Vietnam is prone to typhoons that are often deadly. Last year, Typhoon Yagi killed around 300 people and caused damages estimated at $3.3 billion across northern Vietnam. ($1 = 26,395 dong) https://www.reuters.com/business/environment/vietnam-estimates-property-damage-typhoon-bualoi-303-mln-2025-10-01/