Bank of England Chief Warns of Risks in Private Stablecoin Issuance
Andrew Bailey, Governor of the Bank of England (BOE), has expressed concerns over banks issuing stablecoins, proposing that tokenized deposits would be a safer alternative.
In an interview with The Sunday Times, Bailey cautioned that stablecoins could pose systemic risks to financial stability, potentially eroding government control over monetary policy. He also ruled out the possibility of the UK launching a central bank digital currency (CBDC) in the near future.
Bailey, who now chairs the Financial Stability Board (FSB), is expected to take a firm stance on stablecoin regulation during his tenure.
Meanwhile, stablecoins continue to play a pivotal role in cryptocurrency markets by enabling efficient cross-border transactions and expanding financial inclusion—offering users worldwide access to dollar-pegged and euro-pegged digital assets without reliance on conventional banking systems.
