Bank of England Governor Andrew Bailey told the House of Commons Treasury Select Committee on 22 July that the U.K. may not need to introduce a retail central bank digital currency. If work under way with commercial banks leads to better payment options, he said, "I question why we need to introduce a new form of money," repeating the caution he voiced in a Mansion House speech earlier this month. He also warned that privately issued stablecoins should not be allowed to erode sovereign currencies. Bailey’s testimony sought to reassure lawmakers about recent market moves. He noted that the gilt yield curve has steepened in line with global trends, driven primarily by greater uncertainty over trade policy rather than the Bank’s quantitative-tightening program. Longer-term investors, he added, appear less willing to hold large dollar positions, contributing to shifts in global bond markets. The governor said a higher share of borrowing is now being undertaken by the government rather than the private sector, but described market conditions as calmer than in April, citing the successful completion of a rescheduled 30-year gilt sale this week. Bailey also urged ministers to avoid drastic changes as they review the post-crisis ring-fencing regime that separates large banks’ retail and trading operations, and cautioned the opposition Labour Party’s economic team against a wholesale repeal of financial regulations.