BlockBeats News, July 14th, according to Cointelegraph, Andrew Bailey, the Governor of the Bank of England, recently warned banks not to issue stablecoins, and stated that the Bank of England should focus on deposit tokenization. Stablecoins could pose systemic risks to banking institutions, potentially destabilizing the entire financial system and leading to sovereign governments losing control of their domestic currency. The Bank of England should not adopt a central bank digital currency (CBDC) or attempt to introduce 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 regulation of stablecoins in the future. Additionally, officials from multiple European countries have expressed concerns about the U.S.'s efforts to promote a USD stablecoin, suggesting that this could threaten the euro's position.
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