This marks the first direct regulatory clash between major economies over stablecoin policy, with the unprecedented situation of a former US president's associated stablecoin (USD1) achieving significant market presence ($2.2B). The divergence between UK's traditional deposit tokenization and US's stablecoin embrace represents a critical fork in global digital currency governance.
UK-US Stablecoin Clash: Bailey Warns Against Digital Currency Shift
📰 What Happened
Bank of England Governor Andrew Bailey has publicly opposed banks issuing stablecoins, contradicting the Trump administration's pro-stablecoin stance. Bailey advocates for tokenized deposits over stablecoins, warning of potential disruption to traditional banking. Meanwhile, the US is preparing legislation supporting bank-issued stablecoins, with Trump-linked USD1 stablecoin already reaching $2.2 billion market capitalization. Bailey stated it would be 'sensible' for the UK to digitize deposits rather than issue CBDCs.
📖 Prophetic Significance
The emergence of competing digital currency frameworks enables Revelation's economic control systems in unprecedented ways. The Trump administration's backing of USD1 ($2.2B cap) demonstrates how private entities can now create globally-accepted digital money, while Bailey's preference for tokenized deposits shows how central banks could maintain control. This dual-track development - private stablecoins versus state-controlled digital deposits - creates the technical infrastructure for a future single economic authority to implement universal transaction monitoring and control, fulfilling Revelation's buy-sell system requirements.