The article presents insights from a presentation given at the Bank of England, focusing on the role of stablecoins in the financial system. The author argues that stablecoins can extend beyond the concept of narrow banking, which typically limits banks to accepting deposits and making loans without engaging in riskier financial activities. By rethinking how stablecoins function, the author suggests they can play a broader role in facilitating financial transactions and improving liquidity in the economy. A key point is the need to reconnect money and credit within blockchain systems. The author highlights that stablecoins, when effectively integrated with existing financial structures, can enhance transparency and efficiency. By utilizing blockchain technology, stablecoins can streamline transactions, reduce costs, and potentially provide greater access to financial services for underserved populations. The article raises questions about regulatory frameworks and the necessary steps to ensure that stablecoins are safe and reliable for users. The discussion also touches on the challenges of implementing stablecoins in a way that aligns with traditional banking practices and regulatory requirements. The author emphasizes the importance of collaboration between regulators and innovators. Without careful oversight, the integration of stablecoins could lead to increased risks in the financial system. The author calls for a balanced approach, one that fosters innovation while maintaining stability and consumer protection.