BoE warns of US stablecoin 'wrestle'

Bank of England Governor Andrew Bailey expressed concerns about potential regulatory clashes with the United States regarding stablecoins. He highlighted the risk that U.S. stablecoins, particularly those with difficult redemption processes, could flood into markets like the UK during financial crises. Bailey, who also chairs the Financial Stability Board, emphasized the need for international cooperation to establish robust rules. The warning underscores the growing importance of stablecoins in the financial system and the challenges regulators face in managing their cross-border implications and potential systemic risks.