Overview

• Bailey warned that bank-issued stablecoins could siphon money out of the banking system and undermine credit creation and monetary control
• He urged banks to digitise traditional deposits into tokenised forms to preserve stability and efficiency in payments
• US lawmakers are set to pass the Genius Act this week, authorising commercial banks to launch their own stablecoins with JPMorgan, Bank of America and Citi leading the charge
• Inside the Bank of England, figures like Sasha Mills have signalled openness to using stablecoins in wholesale markets, revealing internal differences over regulation
• An Innovate Finance report cautioned that overly prescriptive UK rules risk deterring innovation and crippling London’s bid to become a global stablecoin trading hub