UK Central Bank Chief Rejects Stablecoins, Favors Tokenized Deposits

Bank of England Governor Andrew Bailey has warned that private stablecoins risk destabilizing the financial system, urging banks to focus on tokenized deposits instead.

In a Sunday Times interview, Bailey dismissed the idea of a UK CBDC, emphasizing the dangers of losing monetary control. His new role as FSB chairman suggests stricter stablecoin regulations ahead.

Despite regulatory pushback, stablecoins remain key to crypto, enabling low-cost cross-border transactions in major fiat currencies.