Bank of England clarifies plan to limit stablecoins is temporary
Industry groups criticized the proposed stablecoin limits, arguing that they would stifle innovation and signal to the industry that the UK isn’t crypto-friendly.
Bank of England Deputy Governor Sarah Breeden has clarified that the central bank’s plan to restrict stablecoin holdings and transaction size will only be a temporary measure to ensure stability in the financial system.
The proposed limits on stablecoins were first floated in a November 2023 discussion paper as a means to ensure financial stability. As plans progressed, industry groups lashed out in September, arguing that they would stifle innovation and limit growth.
However, in a speech at DC Fintech Week on Wednesday, Breeden said the limits were intended only as a temporary stopgap, which will be removed as the bank ultimately wants to “support a role for stablecoins as part of a multi-money system.”
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