Bank of England Governor warns of risks of private stablecoin issuance, suggests focus on deposit tokenization

PANews reported on July 14 that Andrew Bailey, Governor of the Bank of England, warned in an interview with The Sunday Times that banks issuing stablecoins could bring systemic risks, threaten the stability of the financial system, and could lead to the loss of control over sovereign currencies. He suggested that the Bank of England should focus on deposit tokenization rather than launching central bank digital currencies (CBDCs) or centralized digital fiat currencies. Bailey is currently the chairman of the Financial Stability Board (FSB), an international financial regulator, and may strengthen the supervision of stablecoins in the future. In addition, officials from many European countries have also expressed concerns about the US plan to promote a stablecoin for the US dollar, believing that this could threaten the status of the euro.