Bank of England proposes ownership limits in new stablecoin rules
The Bank of England is planning to temporarily impose caps on holdings of stablecoins, which are cryptocurrencies pegged to traditional assets such as real currency.
Individuals will be limited to owning up to £20,000 in UK stablecoins that are considered systemically important under the plans. Most businesses would have a limit of up to £10 million.
The Bank of England has been assessing the potential opportunities and risks linked to digital currencies over the past year.
Governor Andrew Bailey said the UK should “reap the benefits” of stablecoins as part of the country’s financial system and said it would be “wrong” to be against them as a matter of principle.
The Bank said it is “preparing for a future where new forms of digital money may be widely used for payments alongside existing ones”.
Sarah Breeden, deputy governor, said: “Our objective remains to support innovation and build trust in this emerging form of money. We’ve listened carefully to feedback and amended our proposals for achieving this.”