UK Unveils Stablecoin Rules: £20,000 Limit on Holdings

The Bank of England is set to publish a detailed consultation paper on stablecoin regulation next week, outlining holding limits for digital currencies. The proposals, which will be revealed on November 10th, include caps of up to £20,000 ($26,000) for individuals and £10 million for businesses. This move comes as regulators aim to prevent sudden shifts in deposits into stablecoins, particularly given the UK’s reliance on a bank-funded mortgage market that faces potential liquidity stress.