'A Poison Pill For Britain's Financial Sector': Nigel Farage Slams Bank of England Stablecoin Ownership Cap

Core Viewpoint - The Bank of England's proposed caps on individual stablecoin holdings are criticized as detrimental to the UK's financial sector and its global competitiveness, according to Reform UK leader Nigel Farage [1][3]. Group 1: Proposed Regulations - The Bank of England has proposed a "temporary" cap of £20,000 ($26,350) on individual stablecoin ownership and a £10 million limit for businesses, citing financial system risks [2]. - The central bank's recent consultation paper indicates a shift in stance, allowing issuers to hold up to 60% of their reserves in short-term government bonds, compared to a previous requirement of 100% cash [5]. Group 2: Industry Impact - Farage argues that the stablecoin cap does not provide protection and instead hinders fintech growth, potentially ceding leadership in digital finance to other global hubs like New York and Dubai [3]. - Farage has positioned himself as a champion for the cryptocurrency industry, claiming influence over the Bank of England's decisions regarding stablecoin regulations [3][4]. Group 3: Political Context - Farage has integrated cryptocurrencies and blockchain technology into his political agenda, promising significant tax cuts on cryptocurrency capital gains and the establishment of a national Bitcoin reserve if his party gains a majority in future elections [6].