The Governor of the Bank of England warns against issuing private stablecoins

ChainCatcher news, according to Cointelegraph, Bank of England Governor Andrew Bailey recently warned banks against issuing stablecoins and stated that the Bank of England should focus on deposit tokenization. Stablecoins pose systemic risks to banking institutions, potentially undermining the stability of the entire financial system and leading sovereign governments to lose control over their national currencies. The UK central bank should not adopt central bank digital currencies (CBDCs) nor should it attempt to launch centrally managed digital fiat tokens.

Andrew Bailey currently serves as the chair of the Financial Stability Board (FSB), an international financial regulatory body, and may strengthen regulations on stablecoins in the future. Additionally, officials from several European countries have expressed concerns about the U.S. push for dollar stablecoins, believing it could threaten the euro's status.