Bank of England Governor Andrew Bailey has warned against private stablecoin issuance, arguing that tokenizing bank deposits is a preferable path for financial institutions.
While Bailey told The Sunday Times that stablecoins present systemic risks and could weaken monetary sovereignty, his skepticism comes at a time when these digital assets are transforming global payments. By moving fiat currencies onchain, stablecoins eliminate the need for costly banking intermediaries, democratizing access to dollars, euros, and yen.
As the new chairman of the Financial Stability Board (FSB), Bailey’s regulatory approach may hinder the growth of stablecoins—despite their role in fostering financial inclusion and efficiency. His dismissal of a UK CBDC further underscores the tension between traditional finance and the rapidly evolving crypto economy.
