Bank of England Introduces New Regulations for Stablecoin Holdings

The Bank of England has unveiled new guidelines for stablecoin holdings, proposing that 60% of the assets backing these digital currencies should be held in short-term UK government bonds. Additionally, at least 40% of stablecoins’ reserves must be deposited with the Bank of England itself. To further safeguard the system, the proposal sets a cap on individual stablecoin holdings at £20,000, while businesses will face limitations of £10 million.