MZH Zee

07/14 02:37

BoE Governor Warns Against Private Stablecoins B

BoE Governor Warns Against Private Stablecoins

BoE Governor Andrew Bailey has joined a growing list of European officials concerned about the rise of stablecoins.

BoE Governor Andrew Bailey recently warned against banks issuing stablecoins, saying the BoE should instead focus on tokenizing deposits.

Stablecoins pose systemic risks to banking institutions that could destabilize the entire financial system, causing sovereign governments to lose control of their currencies, a BoE spokesman told The Sunday Times.

He also added that the UK central bank should not implement a central bank digital currency (CBDC) or otherwise attempt to launch a centrally-managed digital fiat token.

 Bailey is the new chairman of the Financial Stability Board (FSB), an international financial regulator, and suggests that he will clamp down on the spread of stablecoins during his time at the helm.

Stablecoins are one of the largest sectors of cryptocurrency and could help increase the geographic tradability of fiat currencies by providing blockchain-based payment routes, eliminating the need for a robust banking infrastructure to transfer funds across borders, thereby democratizing access to major currencies such as the US dollar, euro, and Japanese yen.



#HTX 12th-Anniversary Carnival#Check In to Win a 20g Gold Bar#BTC price hits a new high of $120,000! #Trump family backs TRON's US listing#Do you think SQD is promising?

1Share