The Governor of the Bank of England warns against the issuance of private stablecoins.

CoinVoice has recently learned that, according to Cointelegraph, Bank of England Governor Andrew Bailey has warned banks against issuing stablecoins and stated that the Bank of England should focus on the tokenization of deposits. Stablecoins pose systemic risks to banking institutions, potentially undermining the stability of the entire financial system and causing sovereign governments to lose control over their national currencies. The Bank of England should not adopt Central Bank Digital Currency (CBDC) nor should it attempt to launch centrally managed digital fiat tokens.

Andrew Bailey currently serves as the chair of the Financial Stability Board (FSB), an international financial regulatory body, and may strengthen regulation on stablecoins in the future. Additionally, officials from several European countries have expressed concerns over the United States' push for a dollar stablecoin, believing that it could threaten the euro's status.