Bank of England governor Andrew Bailey warns against banks issuing stablecoins, advocating for tokenizing deposits instead. Stablecoins could destabilize the financial system, leading to loss of control over currencies. Bailey, chairman of the FSB, plans to regulate stablecoins. US prioritizes stablecoin regulations to ensure dollar dominance globally. Trump administration supports overcollateralized stablecoins backed by cash or US Treasury bills. European officials caution against US stablecoin plans, fearing displacement of the euro. Federal Reserve chairman Powell calls for cohesive stablecoin policies in the US.

Read more at Cointelegraph: UK Banks Should not Issue Stablecoins