Bank of England Governor Andrew Bailey has raised concerns about the potential financial risks posed by US stablecoins to the UK. Bailey, who also chairs the Financial Stability Board, highlighted the danger of US-issued stablecoins with inadequate redemption mechanisms flooding into the UK during financial crises. Such capital flows could disrupt exchange rates and strain liquidity in domestic markets. In response, the Bank of England is developing a regulatory framework for sterling-denominated stablecoins, which includes a dual-regulator model involving the Financial Conduct Authority. This framework aims to ensure systemic stablecoin issuers have access to Bank of England liquidity facilities, mitigating potential financial instability. Bailey's warnings come as the US considers its own stablecoin legislation, with differing approaches to crisis management.