BOE Governor Bailey Warns Banks Against Issuing Own Stablecoins
Andrew Bailey during a financial stability report news conference at the central bank's headquarters in the City of London, UK, on July 9.
Photographer: Chris Ratcliffe/BloombergBank of England Governor Andrew Bailey has warned the world’s largest banks against issuing their own stablecoins, setting up a potential clash with President Donald Trump’s administration and its backing of the digital assets.
Speaking in an interview with the Times newspaper, Bailey said he “would much rather” banks offer digital versions of traditional money — known as tokenized deposits — than stablecoins, which are designed to hold a steady value and are usually pegged to a traditional currency. Bailey also warned that stablecoins threaten to take money out of the banking system and leave less funds available for lending, according to the Times interview.