Industry groups criticized the proposed stablecoin limits, arguing that they would stifle innovation and signal to the industry that the UK isn’t crypto-friendly.
Bank of England Deputy Governor Sarah Breeden has clarified that the central bank’s plan to restrict stablecoin holdings and transaction size will only be a temporary measure to ensure stability in the financial system.
The proposed limits on stablecoins were first floated in a November 2023 discussion paper as a means to ensure financial stability. As plans progressed, industry groups lashed out in September, arguing that they would stifle innovation and limit growth.
However, in a speech at DC Fintech Week on Wednesday, Breeden said the limits were intended only as a temporary stopgap, which will be removed as the bank ultimately wants to “support a role for stablecoins as part of a multi-money system.”
