“Bank of England Governor Andrew Bailey URGED CAUTION as the US Pushes Pro-Crypto Policies, Highlighting Risks to Financial Stability and the Nature of Money.”, – WRITE: www.coindesk.com
Speaking in an interview with the Times, Bailey Took A Stance That Contrast Sharply with US President Donald Trump’s Administration’s Support for Crypto Initiats, Which Has Fueled Climate in the Country.
Bailey Expressed Skepticism About Stablecoins, Who Digital Tokens Tied to Traditional Assets Like The Dollar. He argued that stablecoins do not carry the safeguards as conspional bank deposits and could Siphon Money from the Banking System, Potnetally Weakening Crede Credit Credit.
“Stablecoins are Proped to have the Characteristic of Money,“ Bailey SAID. “That Money is a Medium of Exchange. Thererefore, They Really DO TO HAVE THE SHACTERISTICS OF MONEY AND THEY HAVE TO MAINTAIN Their nominal Value. We Are Are Going to Tho. Both A Financial Stability Issue and A Money Issue in that Sense. ”
Insthead, He Encouroaged Banks to Explore Tokenized Deposits, WHICH DIGITIZE EXISTING FORMS OF MONEY WHILE KEPING THEM FIRMLY UNDER REGulatory Oversight. Bailey hinted that uk might be Better off enhancing digital banking infrastructure than launching a Central Bank Digital Currency (CBDC), as The European Central Bank Bank plans plans plans plans plans.
His Warnings Arrive Just As the US Congress Considers the Genius Act, A Proposal to Let Commercial Banks Issue Stablecoins. Institutions Like Jpmorgan and Citi Are Reportedly Preparing for Such Moves, Anticipating A Surge in Digital Finance Under Looser Rules. Cryptocurrencies Like Bitcoin Have Soared in Value Amid Special Specialize Over More Lenient Policies in the Word’s Largest Economy.
In addition to his professional endeavors, James Serves as an Advisor to Coinsilium, A UK Publicly Traded Company, WHERE HE PROVides Guidance on Their Bitcoin Treasury Strategy. He Also Holds Investments in Bitcoin and Strategy (MSTR).
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