Andrew Bailey Slams Bank Stablecoins, in contrast to Trump’s pro-crypto wave: The Times
Bank of England Governor Andrew Bailey has warned global investment banks against the development of their own stablecoins, featuring possible financial stability threats.
Speaking in an interview In the Times, Bailey stood strongly with the support of President Donald Trump’s President for the Crypto initiatives, which had pledged the expectations of a more lovely climate of regulation in the country.
Bailey expressed a doubt about the stablecoins, which Digital tokens tied to traditional possessions Like the dollar. He argues that Stablecoins do not carry the same care as conventional bank deposits and may sip money from the banking system, which potentially weakens the creation of credit and financial policy control.
“Stablecoins have suggested to have money properties,” Bailey said. “That money is a medium of exchange. Therefore, they need to have money characteristics and they need to maintain their nominal value. We need to look at it closely through that lens. Both an issue with financial stability and a money issue in that sense.”
Instead, he encouraged banks to explore tokenized deposits, which initiated existing currency forms while maintaining it stable under regulatory supervision. Bailey indicates that the UK may be better at enhancing digital banking infrastructure than to launch a Central Bank Digital Currency (CBDC)As the European Central Bank plans to do in the coming years.
Came his warnings as the US Congress considers the Genius Acta proposal to let commercial banks issue stablecoins. Institutions such as JPMorgan and Citi have been reported preparing for motions, expecting a digital finances under looser policies. Cryptocurrencies such as Bitcoin have sank in value amid imagination -Haka to more evil policies in the largest word economy.
