The manager of England, Andrew Bailey) warned large international banks against launching their own stabiboons, saying that cryptocurrencies contradict the principles of the monetary system and pose a threat to financial stability.

The head of the Bank of England fears that stabilcoins create systemic risks for banking institutions and can destabilize the entire financial system, as a result of which the government risk losing control of state currencies. Bailey proposed to tighten the regulation of stablecoins by establishing a “high bar” for their issuers, since people who use these crypto acts regard them as money. Bailey’s statements were made shortly before the House of Representatives of the US Congress and the US Senate will have to discuss the regulation of stablecoins as part of the Cryptocurrency Week.

Bailey added that the bank of England, like other central banks, should not be introduced by its own digital currency (CBDC), but it is better to focus on the development of tokenized deposits. At the same time, the regulator had previously promised by 2025 to launch a digital pound, which, as the developers said, will retain the confidentiality of users.

“I would say that the United States is moving towards stablecoins, and the European Central Bank (ECB) is moving to the digital currency of the Central Bank, digital euro. No one is going to tocenize deposits, ”Bailey said.

Andrew Bailey, who also holds the post of chairman of the Council for Financial Stability, called on investors not to buy bitcoin. According to him, Bitcoin does not have a function of money, and if investors invest in it, they do it at their own peril and risk. At the beginning of the year, the official called Bitcoin an ineffective means of payment and said that cryptocurrencies are slowly introduced into the financial sector.