Bank of England: Stablecoin Restrictions to Be Lifted After Economic Threats Ease

Techub News, according to Bloomberg, the Bank of England stated that it will withdraw proposed limits on the amount of stablecoins held by individuals and businesses once digital assets no longer pose a threat to the economy. Deputy Governor Sarah Breeden noted that if stablecoins proliferate rapidly, it could trigger a significant outflow of deposits from banks, thereby hindering the supply of credit to businesses and households. To prevent such risks, the Bank of England is currently considering imposing limits on stablecoin holdings, transaction sizes, or total scale; however, she emphasized that once it is confirmed that their threat to the financial system has been eliminated, authorities are willing to lift these restrictions. Additionally, Breeden stated that the UK will soon launch a public consultation and will finalize a more comprehensive regulatory framework for stablecoins in the future, aiming to align with the U.S. in policy direction.