On July 14, according to Cointelegraph, Bank of England Governor Andrew Bailey recently warned banks against issuing stablecoins, stating that the Bank of England should focus on deposit tokenization. Stablecoins could pose systemic risks to banking institutions, potentially disrupting the stability of the entire financial system and causing sovereign governments to lose control of their national currencies. The UK central bank should not adopt central bank digital currencies (CBDCs) or attempt to launch a centrally managed digital fiat token.
Andrew Bailey currently serves as the chairman 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 United States' plans to promote dollar stablecoins, believing they could threaten the status of the euro.
