UK’s BOE Signals Flexibility in Stablecoin Regulation: Limits are Temporary

The Bank of England is taking a pragmatic approach to regulating stablecoins, signaling that temporary restrictions on their use are designed for short-term stability and not permanent barriers. Deputy Governor Sarah Breeden emphasized that the proposed limits on holdings and transactions are intended as a bridge while the UK explores integrating cryptocurrencies into its financial system, aiming to balance innovation with safeguarding economic stability. The Bank will review these measures based on feedback and market adaptation before removing them once stablecoin adoption stabilizes.