The Bank of England proposed a cap of £20,000 for holding stablecoin.

TapChiBitcoin

2025-11-10 12:47:15

The Bank of England ( BoE ) proposed a new legal framework for stablecoins pegged to the pound, imposing a temporary limit of £20,000 for individuals and £10 million for businesses holding systemically important stablecoins. Deputy Governor Sarah Breeden stated that this measure aims to prevent the risk of a bank run from commercial banks, but affirmed that the limits will be lifted once the market stabilizes.

According to the recently published consultation document, stablecoin issuers can hold up to 60% of their collateral in short-term government bonds and 40% in the form of deposits at the Bank of England. However, the cryptocurrency community criticizes the overly cautious regulation, arguing that it will stifle innovation and cause the UK to fall behind the US, where there are no ownership limits.

Currently, the stablecoin neo against the British pound only accounts for about 1.65 million USD of the total global value of 305 billion USD.

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