Bank of England Governor Warns Banks Not to Issue Stablecoins

On July 14, according to Bloomberg, Bank of England Governor Andrew Bailey warned global mega-banks against issuing their own stablecoins in an interview with The Times. This stance may conflict with the Trump administration's policy of supporting digital assets. Bailey stated that he would "much prefer" banks to offer digital versions of traditional currencies (i.e., tokenized deposits) rather than stablecoins. He warned that stablecoins could draw funds out of the banking system, reducing the amount of funds available for lending. Previously, the Bank for International Settlements also pointed out that the growth of stablecoins poses new risks to regulators. [Deep Tide TechFlow]