Bank of England Unveils Stablecoin Regulatory Framework for Systemic Coins

The Bank of England is launching a consultation exploring regulatory guidelines for stablecoins backed by sterling, aiming to modernize payment systems. The proposals focus on systemic stablecoins, those playing a significant role in UK payments and overseen by both the Bank of England and the FCA. Key elements include reserving up to 60% of reserves in short-term government debt, temporary holding limits, and increased oversight for these coins.