UPDATE: Bank of England's proposed sterling stablecoin caps seen as potential drag on business

The Bank of England has floated limits on sterling-denominated stablecoins that would cap holdings at £20,000 for individuals and £10 million for businesses. Market participants say the thresholds could curb growth and stifle innovation, BeInCrypto reported. Industry executives also warn the restrictions may prompt talent and firms to relocate overseas. The proposal would further require 40% of reserves to be held in noninterest-bearing accounts, a condition critics say could materially cut issuer revenue.