Bank of England is preparing to scale back its planned stablecoin restrictions
after industry pressure, with Deputy Governor Sarah Breeden saying initial
proposals may have been “overly conservative.” The BoE is reviewing limits on
stablecoin holdings, previously proposed at £20,000 per individual and £10mn for
firms, and is also rethinking a requirement for at least 40% of backing assets
to be held as non-interest-bearing central bank deposits. The review comes as
stablecoins remain a small share of the $315bn global market, with the regulator
aiming to balance innovation with financial stability concerns.
