US EditionBank of England Confirms Plans for 'Temporary' Stablecoin Holding Limits
- On Monday, the Bank of England proposed temporary limits on stablecoin holdings, suggesting a cap of 20,000 for individuals to maintain stability during digital finance shifts.
- Sarah Breeden said recently that limits were needed to curb risks destabilizing the commercial banking sector, with urgency growing after the Terra stablecoin collapse wiped out $40 billion in investors' money.
- The Bank of England proposes that stablecoin issuers hold up to 60% of backing in short-term U.K. government debt, with the rest in unremunerated Bank of England accounts.
- The consultation runs until February 10 and invites feedback, while cryptocurrency groups branded the limits unworkable and noted possible exemptions for crypto exchanges and supermarkets.
- Breeden said the proposals pave the way for implementing a stablecoin regime next year and the Bank is considering central bank liquidity arrangements aligned with international regulatory safeguards.
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Bank of England and sterling stablecoins
The Bank of England (BoE) has announced a new consultation paper outlining how it plans to regulate systemic stablecoins – digital currencies designed to maintain a stable value against the pound sterling. The proposals, published on November 10, aim to make stablecoins safe enough for everyday payments while protecting the wider economy. Stablecoins are digital tokens whose value is tied to… Source
Bank of England Proposes £20,000 Limit in Landmark Stablecoin Framework - Coin Surges
The Bank of England proposed rigorous rules for sterling stablecoins, including allowing up to 60% of reserves in short-term UK debt and setting £20,000 limits per individual, aiming to protect consumers while securely expanding digital money adoption. Bank of England Proposes Sweeping Rules to Regulate Sterling Stablecoins The Bank of England moved to strengthen oversight […] Read Entire Article The post Bank of England Proposes £20,000 Limit i…
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