Bank of England governor sounds alarm on stablecoins
The governor of the Bank of England has raised concerns regarding stablecoins, as thousands of savers may encounter potential losses following the revelation of a $2.7 million shortfall at Ziglu, a British crypto fintech that has entered special administration. Additionally, despite Bitcoin achieving new all-time highs, retail interest in the asset is waning.
On Sunday, Andrew Bailey, the governor of the Bank of England (BOE), cautioned against banks issuing stablecoins and advocated for the BOE to consider adopting tokenized deposits instead.
The official from the Bank of England stated that the UK central bank ought not to align with the European Union in advocating for a central bank digital currency (CBDC) or in the issuance of a 'digital pound.'
Concerns expressed by Bailey have been echoed by other officials within the EU, who contend that stablecoins tied to the US dollar could disrupt the financial system or inflict additional harm on the euro within global currency markets.
