Bank of England Governor Warns Banks Against Issuing Stablecoins, Urges Focus on Deposit Tokenization

According to a report by Jinse Finance, Bank of England (BOE) Governor Andrew Bailey recently warned banks against issuing stablecoins, stating that the Bank of England should focus on the tokenization of deposits. He emphasized that 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 currencies. He also added that the Bank of England should not adopt a central bank digital currency (CBDC) or otherwise seek to introduce centrally managed digital fiat tokens.