In a recent interview with The Times, Bank of England Governor Andrew Bailey warned that allowing commercial banks to issue their own stablecoins could threaten financial stability and the nature of money itself.
Bailey expressed concern that stablecoins — digital assets intended to maintain a stable value and often pegged to a fiat currency — risk pulling money out of the banking system and undermining credit creation. "Stablecoins are proposed to have the characteristics of money," he said. "They really do have to have the characteristics of money and they have to maintain their nominal value. We are going to have to look at it very closely through that lens."
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