Bank of England Proposes £20,000 Cap on Stablecoin Holdings

The Bank of England unveiled proposals for a regulatory regime governing sterling-denominated stablecoins, introducing temporary limits of £20,000 for individuals and £10 million for businesses holding systemic stablecoins. Deputy Governor Sarah Breeden defended the restrictions as necessary to prevent rapid deposit outflows from commercial banks that could threaten credit availability, while promising that the caps would be removed once the transition no longer posed a risk to the UK economy. Deputy Gov ...