Bank of England Eases Fears Over Stablecoin Limits
The Bank of England clarified that its proposed limits on stablecoin holdings and transactions will be temporary safeguards to protect the UK’s financial system.
According to Deputy Governor Sarah Breeden, the restrictions are in place to prevent sudden liquidity shifts from banks to stablecoins. She confirmed that a public consultation will be held later this year and that the limits will be lifted once stability is assured.
- The Bank of England plans to lift the limits once stability is assured.
- A public consultation will be held later this year.
The central bank’s proposed restrictions on stablecoin holdings and transaction sizes will be temporary measures to ensure a smooth and stable transition for the financial system.
Meanwhile, in Europe, the launch of EUROD, a euro-pegged stablecoin under the EU’s MiCA regulation, demonstrates the continent's push to strengthen its role in the global stablecoin market.
Author's summary: Bank of England limits on stablecoins are temporary.