Bank of England to Temporarily Limit Stablecoin Holdings

The Bank of England has proposed temporary restrictions on individuals and businesses holding stablecoins, aiming to mitigate risks associated with rapid adoption. Deputy Governor Sarah Breeden warned that unchecked growth of stablecoins could lead to a significant decline in bank deposits, potentially hindering access to credit for businesses and households. To address this concern, the Bank is considering limiting the overall size and transaction volume of stablecoin holdings while ensuring continued stability within the financial system. These restrictions will be lifted once determined safe for real-world economic activity. 🤝 🏦