On July 14, according to Cointelegraph, Bank of England Governor Andrew Bailey recently warned banks not to issue stablecoins, saying that the Bank of England should focus on deposit tokenization. Stablecoins pose a systemic risk to banking institutions, which could destabilize the entire financial system and cause sovereign governments to lose control of 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 also expressed concern about the US push for dollar stablecoins, believing that this could threaten the status of the euro.
[BlockBeats]