Bank of England (BOE) Governor Andrew Bailey recently said that the UK Bank should instead focus on inducing deposit symbols.
Stablecoins has introduced systemic risks to banking institutions that could destabilise the entire financial system, and the sovereign government will lose control of the currency, a BOE official told the Sunday Times in an interview.
He also added that the UK central bank should not adopt the central bank’s digital currency (CBDC) or try to launch a centrally controlled digital fiat token.
Bailey is the new chairman of the international financial regulator, Financial Stability Committee (FSB), suggesting that he will close the surge in stubcoins during the helm.
Stablecoins is one of the biggest sectors of crypto, and by bringing on-chain payment rails, it helps to increase the geographical salinity of Fiat currency and remove the need for a robust banking infrastructure to send funds across boundaries.
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The US will all-in on stubcoin under the Trump administration
The Trump administration has repeatedly said that establishing comprehensive stubcoin regulations in the United States is a top priority.
Speaking at the White House Digital Assets Summit in March, US Treasury Secretary Scott Bescent said stubcoin will extend its control of the US dollar and ensure that the dollar will remain a global reserve currency.
https://www.youtube.com/watch?v=fdpmjhtq5am
Over-materialized Stablecoin issuers will assist with digital fiat tokens with cash held on banking institutions or short-term US Treasury bills.
By allowing private companies to tokenize US debt certificates, the administration can ease some of the inflationary pressures on the dollar by spreading demand for US debt certificates to those with mobile phones and crypto wallets.
Federal Reserve Chairman Jerome Powell has also expressed support for the idea, calling for cohesive and ridiculous policies in the United States.
But European counterparts have repeatedly sounded alarms for the US stable plan, warning that the dollar-controlled absurd idiot poses a threat to the EU financial system and can completely replace the euro.
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