Bank of England softens stance on stablecoins

The Bank of England’s position on stablecoins is shifting toward a more receptive stance. The bank launched a consultation on stablecoins in November last year and has been revising backing requirements and rethinking account limits after industry objections. Deputy Governor Sarah Breeden told the House of Lords Financial Services Regulation Committee the proposed limits were designed to mitigate the risk of a large migration of deposits to stablecoins and that the bank is "open to feedback on other ways of achieving it." She added: "The pressure from the industry to do it in a different way is very real.

What we've been a bit disappointed with, is nobody said, 'Why not do it this way?'" Industry representatives say they have engaged.

United Kingdom

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