Bank of England Comes Around on Stablecoins
The Bank of England is softening its stance on stablecoins but notes a lack of constructive industry feedback on alternative risk mitigation methods.Summary
The Bank of England (BOE) is showing a friendlier position on stablecoins, with Deputy Governor Sarah Breeden indicating openness to reconsidering controversial holding limits proposed in its November 2022 consultation paper. These limits, intended to prevent deposit migration destabilizing banks, were 20,000 pounds for individuals and 10 million pounds for businesses. While the industry views the BOE's acceptance of a "multi-moneyverse" as positive evolution, Breeden expressed disappointment that industry feedback has largely consisted of objections rather than offering constructive alternative solutions to manage risks. Industry representatives counter that they have provided extensive input, but argue that creating a comprehensive regime for a nascent market requires a lighter, principles-based approach. The BOE is expected to finalize rules by the second half of 2026, while the industry continues to push for the removal of holding caps and changes to reserve requirements, suggesting the UK could lead in stablecoins if regulation is proportionate.
(Source：Cointelegraph)