Bank of England Reassesses Stablecoin Holding Limits Following Industry Pushback

The Bank of England is preparing to revise proposed restrictions on stablecoin holdings following significant pushback from the cryptocurrency and fintech sectors, according to reports from the Financial Times and Reuters. The central bank is specifically reassessing draft proposals that suggested individual holding limits between £10,000 and £20,000, alongside a £10 million cap for businesses. While these measures were initially designed to safeguard financial stability and prevent rapid outflows from traditional bank deposits, industry participants argued such strict constraints would stifle the UK’s goal of becoming a global digital-asset hub. Deputy Governor Sarah Breeden noted that the BoE is now exploring alternative approaches to achieve policy objectives without imposing excessive operational hurdles. This shift suggests a strategic effort to balance financial safeguards with the practical requirements of real-world digital payments and settlement services.