Bank of England Governor Andrew Bailey has cautioned the world’s largest banks against issuing their own stablecoins, warning that the dollar-pegged tokens could trigger bank runs, facilitate money-laundering and drain deposits from the traditional banking system. In interviews published 13 July and in remarks confirmed by Bloomberg, Bailey said he would "much rather" see lenders develop regulated tokenised deposits, which keep funds inside the banking sector, than launch private digital coins whose circulating value has already swelled to about $255 billion globally. Bailey’s stance sets up a potential confrontation with President Donald Trump, whose administration is urging Congress to pass the GENIUS Act and other legislation that would clear the way for banks and technology firms to issue stablecoins. The governor argued that the initiatives championed in Washington risk undermining monetary sovereignty and should be subjected to tougher global oversight. Speaking two days later at a Mansion House dinner and ahead of this week’s G-20 meetings, Bailey underscored the need for "global cooperation and engagement" through institutions such as the IMF, WTO and the Financial Stability Board, which he now chairs. He added that countries with large fiscal deficits face the greatest market pressure and reiterated that he is "not yet convinced" the UK needs a retail central-bank digital currency, or digital pound. Bailey’s comments signal that, while the United States presses ahead with a market-led expansion of crypto assets, the Bank of England intends to police stablecoin activity closely and prioritise upgrades to the UK’s payments infrastructure over creating new forms of private money.