Bank of England Signals Flexibility on Sterling Stablecoin Holding Limits

Bank of England Deputy Governor Sarah Breeden indicated to UK lawmakers that the central bank is open to alternative methods for managing the risks associated with stablecoins, beyond the proposed holding limits. These limits, floated between £10,000 and £20,000, are intended to prevent a significant shift of bank deposits into stablecoins, which could harm lending and credit availability for UK businesses and households. Industry groups have criticized these limits, fearing they signal hostility toward crypto and could stifle innovation. Breeden also clarified that stablecoins held in self-custody (unhosted) wallets outside regulated entities will not be permissible under the UK's regulatory regime due to AML/KYC oversight concerns. Despite ongoing consultations, the Bank expects to welcome applications from stablecoin issuers by the end of the year, aiming for a regime as robust as traditional bank-issued money.

(Source：Cointelegraph)