[LONDON] Bank of England governor Andrew Bailey has warned the world’s largest banks against issuing their own stablecoins, setting up a potential clash with US President Donald Trump’s administration and its backing of the digital assets. Bailey also warned that stablecoins threaten to take money out of the banking system and leave less funds available for lending, according to The Times interview. The governor is also chair of the Financial Stability Board, which is responsible for monitoring risks in financial markets globally. Bailey also hinted that he did not want the UK to adopt a central bank digital currency (CBDC), known as the digital pound. He said it would be “sensible” for the UK to head towards digitising deposits instead of issuing a CBDC in response to private sector stablecoins.

Source: The Times July 14, 2025 01:13 UTC