BoE Chief Dey Warn Banks About Stablecoins, Support Token Deposits
Bank of England Governor Andrew Bailey don yarn big banks make dem no dey issue dia own stablecoins. Him talk say stablecoins fit cause liquidity wahala, make deposits scatter, plus e fit help money laundering. Bailey prefer tokenized deposits—digital money wey bank get wey dey inside banking system and dey support lending. But Executive Director Sasha Mills dey see stablecoins as important for wholesale markets and she dey call for modernize central bank money alongside keep CBDC as main settlement tool. Even though Bailey dey cautious, banks like JPMorgan, Citi, and Bank of America dey try proprietary stablecoins like JPMD to quick big payments. Bailey also no big up quick CBDC issuance. Traders suppose dey watch UK stablecoin regulation well because future rules fit restrict bank-led projects, affect stablecoin liquidity, plus change bank reserve flows.
Bearish
Bailey warnin dey show say government fit put rules for bank one time stablecoins wey fit make dem reduce how dem dey issue and how e go be liquid. For short time, more checking fit slow down new bank stablecoin product them and e fit make investors no too wan buy. For long time, stricter rule fit stop bank from making better stablecoin, make business move go where e no get regulation or other asset dem. Traders suppose ready for any wahala for stablecoin market and change their strategy well well.