BOE Governor Bailey Warns Banks Against Issuing Own Stablecoins

(Bloomberg) – Bank of England Governor Andrew Bailey warned the world’s largest banks against exporting their own stablecoins, creating a potential conflict with President Donald Trump’s support and digital assets.

Speaking in an interview with the Times newspaper, Bailey said that more traditional money – known as deposit deposits – known as the Stablecoins, which is designed to have a fixed value and is usually fixed to a traditional currency. According to the Times interview, Bailey also warned that Stablecoins threatened to leave less funds for getting money from the banking system and lending.

The governor is also the president of the Board of Financial Stability, which is responsible for the monitoring of risks in the globally financial markets. His stance contradicts the direction taken under the Trump, which is under the legislation of the stablecoin, which constitutes regulatory rules for crypto currencies fixed by the US by the USA. A Stablecoin -connected Stablecoin already has a market value of $ 2.2 billion.

Bailey’s concerns were repeated by other central bankers who called for laws that regulate Stablecoin companies in the same way as banks. They are worried about problems such as the risk of stablecoin accidents that can trigger fire sales of their basic assets and the possibility of changing hands outside the official banking system and the possibility of large amounts of crimes such as black money laundering.

Bailey also implied that Britain did not want Britain to adopt a Central Bank digital currency (CBDC), known as the digital pound. He said that rather than publishing a CBDC in response to the private sector Stablecoins, it would be “logical” to digitize deposits.

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