Bank of England Governor: Stablecoin Regulation Could Trigger a Game of Thrones Between US and International Regulators

Odaily reported that Andrew Bailey, Governor of the Bank of England, stated at the Financial Imbalances Conference that if stablecoins aspire to become a vital component of the global payment system, internationally unified regulatory standards must be established. This could lead to direct confrontation with the Trump administration.

He also expressed concerns about the liquidity risks of certain US stablecoins, stating that some products cannot be directly redeemed for US dollars in crisis scenarios and must go through crypto exchanges. In the event of a stablecoin run, funds could flow to jurisdictions like the UK that have mandatory redemption obligations. Andrew Bailey, who currently serves as the Chair of the Financial Stability Board (FSB), has long maintained a cautious stance towards cryptocurrencies. (Reuters)