The Governor of the Bank of England Warns Against Issuing Private Stablecoins

On July 14, Cointelegraph reported that Bank of England Governor Andrew Bailey recently warned banks not to issue stablecoins, stating that the Bank of England should focus on deposit tokenization. Stablecoins pose systemic risks to banking institutions, potentially destabilizing the entire financial system and causing sovereign governments to lose control over their national currencies. The Bank of England should not adopt a central bank digital currency (CBDC), nor should it attempt to launch a centrally managed digital fiat currency token.

Andrew Bailey currently serves as Chairman of the Financial Stability Board (FSB), an international financial regulatory body, and may strengthen the regulation of stablecoins in the future. In addition, officials from several European countries have expressed concerns about the United States' plan to promote dollar stablecoins, believing that this may threaten the status of the euro.