Bank of England Governor Andrew Bailey has issued a warning to large international banks, urging them to refrain from issuing their own stablecoins. In his view, such cryptocurrencies pose a threat to financial stability and contradict the principles of how the monetary system operates. Bailey noted that stablecoins could undermine the creditworthiness of banks, and instead suggested using tokenized deposits, which align better with the existing financial infrastructure.
Previously, Bailey has repeatedly emphasized the need for strict regulation of stablecoins, comparable to the oversight of fiat currencies. He believes that without proper oversight, such assets could destabilize the economy, especially considering their cross-border nature. The Bank of England is actively exploring the possibility of issuing its own digital currency (CBDC), but Bailey has expressed doubts about the necessity of a retail CBDC, pointing to the sufficiency of the current financial infrastructure.
These statements have sparked discussions in the crypto community, where stablecoins like $USDT and $USDC remain popular tools. Amid tightening regulation in the UK, banks may reconsider their strategies regarding cryptocurrencies. Stay tuned for news and keep updated on events in the world of cryptocurrencies! Subscribe to #MiningUpdates
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