Bank of England Chief Warns Against Private Stablecoins as Global Divide Grows
The post Bank of England Chief Warns Against Private Stablecoins as Global Divide Grows appeared on BitcoinEthereumNews.com. Bank of England Governor Andrew Bailey warns against private stablecoins, contrasting sharply with Trump’s pro-digital currency strategy for America A split is forming between how America and England are handling digital currency rules. Bank of England Governor Andrew Bailey has issued strong warnings against private companies issuing stablecoins, putting him directly at odds with the Trump administration’s push to make these digital dollars a key part of American economic strategy. Bailey’s concerns go beyond simple regulatory disagreements. As the new chairman of the Financial Stability Board, he now has real power to shape international rules around digital currencies. His warnings come as the $264 billion stablecoin market continues growing rapidly, with 99% of all stablecoins tied to the US dollar. Bailey Raises Alarm About Banking System Risks In a recent interview with The Sunday Times, Bailey warned that stablecoins could “destabilize the entire financial system” and cause governments to lose control over their currencies. His main worry centers on how stablecoins might drain money from traditional banks. “If stablecoins take money out of the banking system, banks have less capacity to lend,” Bailey explained. This concern reflects a deeper fear that private digital currencies could undermine the traditional banking system that central banks carefully regulate. Bailey’s solution involves what he calls “tokenized deposits” rather than private stablecoins. He would prefer banks to “go down the tokenized deposit streets and say, how do we digitize our money, particularly in payments.” This approach would keep digital payments within the existing banking framework rather than creating parallel systems. The timing of Bailey’s leadership role at the FSB gives extra weight to his warnings. His three-year term began in July 2025, positioning him to influence global stablecoin standards just as the market hits record growth. Trump Administration Sees Stablecoins as Economic Weapons While Bailey…
The post Bank of England Chief Warns Against Private Stablecoins as Global Divide Grows appeared on BitcoinEthereumNews.com.
Bank of England Governor Andrew Bailey warns against private stablecoins, contrasting sharply with Trump’s pro-digital currency strategy for America A split is forming between how America and England are handling digital currency rules. Bank of England Governor Andrew Bailey has issued strong warnings against private companies issuing stablecoins, putting him directly at odds with the Trump administration’s push to make these digital dollars a key part of American economic strategy. Bailey’s concerns go beyond simple regulatory disagreements. As the new chairman of the Financial Stability Board, he now has real power to shape international rules around digital currencies. His warnings come as the $264 billion stablecoin market continues growing rapidly, with 99% of all stablecoins tied to the US dollar. Bailey Raises Alarm About Banking System Risks In a recent interview with The Sunday Times, Bailey warned that stablecoins could “destabilize the entire financial system” and cause governments to lose control over their currencies. His main worry centers on how stablecoins might drain money from traditional banks. “If stablecoins take money out of the banking system, banks have less capacity to lend,” Bailey explained. This concern reflects a deeper fear that private digital currencies could undermine the traditional banking system that central banks carefully regulate. Bailey’s solution involves what he calls “tokenized deposits” rather than private stablecoins. He would prefer banks to “go down the tokenized deposit streets and say, how do we digitize our money, particularly in payments.” This approach would keep digital payments within the existing banking framework rather than creating parallel systems. The timing of Bailey’s leadership role at the FSB gives extra weight to his warnings. His three-year term began in July 2025, positioning him to influence global stablecoin standards just as the market hits record growth. Trump Administration Sees Stablecoins as Economic Weapons While Bailey…
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