Bank of England signals openness to revising sterling stablecoin caps amid industry pushback

The Bank of England has indicated it is open to revising proposed limits on “systemic” sterling stablecoin holdings after receiving pushback from the crypto industry. Deputy Governor Sarah Breeden stated the central bank is willing to consider alternative approaches to managing financial stability risks as stablecoins gain traction. The initial proposal included temporary holding limits of £20,000 for individuals and £10 million for businesses, designed to mitigate potential deposit outflows from banks. However, industry groups have raised concerns about enforceability and potential discouragement of innovation. The Bank of England is currently reviewing feedback and plans to publish updated draft rules in June, with a final framework expected by year-end. Breeden noted a lack of concrete alternative proposals from the industry, and highlighted the growing interest in stablecoins across Europe, with initiatives like Barclays exploring blockchain platforms and a consortium planning a euro-denominated stablecoin launch in 2026.

(Source：The Block)