Bank of England’s Andrew Bailey Sounds Alarm: ’Stablecoins Pose Systemic Risk to Financial Stability’

Stablecoins—the crypto world's answer to dollar-pegged safety—just got a red-hot warning from one of finance's top cops. Bank of England governor Andrew Bailey isn't mincing words: these digital tokens could blow a hole in the global financial system.

The regulatory bullseye

Central bankers used to shrug at crypto. Now? They're sweating the $150B+ stablecoin market like a hedge fund manager staring at a margin call. Bailey's concern? These 'stable' assets might trigger bank runs—without the actual banks.

Shadow banking 2.0

When your 'safe' asset relies on secretive reserves and algorithmic magic, regulators see 2008 flashing in neon. Never mind that traditional finance still runs on Excel macros and prayers.

Bailey's shot across the bow comes as Tether and friends process more daily volume than Visa. The irony? Banks hate disruption—unless they're the ones disrupting.