Andrew Bailey raises concerns over private stablecoin issuance as the U.S. moves ahead with regulation.
In a recent interview with the Sunday Times, Bank of England Governor Andrew Bailey stressed that, in his view, stablecoins pose a threat to the stability of the traditional banking system.
According to the governor, private issuance of stablecoins could undermine government control over national currencies, creating systemic instability across the entire financial ecosystem.
Bailey’s position contrasts with policies adopted across the Atlantic, where the Trump administration has instead embraced stablecoins as a tool to strengthen the U.S. dollar’s dominance in international markets.
Rather than supporting the private issuance of stablecoins, Bailey advocates an alternative approach focused on the tokenization of bank deposits. The governor also clarified that the Bank of England should not move forward with the development of a CBDC or centrally managed fiat digital tokens.
Bailey’s appointment as the new chair of the Financial Stability Board (FSB), the international financial regulatory body, could signal a more restrictive stance on stablecoins at the global level.
