Andrew Bailey, the governor of the Bank of England (BOE), has expressed concerns regarding banks issuing stablecoins, advocating instead for the tokenization of deposits. In an interview with The Sunday Times, he highlighted the systemic risks stablecoins pose to banking institutions, which could jeopardize the stability of the financial system and undermine government control over currencies. As the new chairman of the Financial Stability Board (FSB), Bailey is expected to take a firm stance against the rise of stablecoins. While stablecoins play a significant role in the crypto sector by enhancing the global accessibility of fiat currencies, they also raise regulatory concerns. In the U.S., the Trump administration has prioritized establishing comprehensive regulations for stablecoins, with Treasury Secretary Scott Bessent emphasizing their potential to bolster the U.S. dollar's dominance. However, European officials warn that U.S. stablecoin initiatives could threaten the EU financial system and potentially displace the euro. Read more AI-generated news on: https://app.chaingpt.org/news