Bank of England Clarifies Stablecoin Limits: Temporary Measures in Place

The Bank of England (BOE) has addressed concerns about its proposed limits on stablecoin holdings, confirming that these restrictions are temporary and intended to ensure financial stability while the industry adapts. Deputy Governor Sarah Breeden highlighted that these measures are meant to provide time for the financial system to adjust to new digital forms of money rather than discouraging innovation. The BOE intends to remove these caps once it determines that stablecoin adoption no longer poses a threat to credit availability in the economy.