Crypto Industry Warns Bank Of England: Stablecoin Limits Bad For UK Savers, Sterling, City
The crypto industry is warning the Bank of England against imposing limits on stablecoin holdings, after a Financial Times report said it plans to cap them for individuals and businesses. According to a Sept. 15 story, the Financial Times (FT) said the BoE is considering imposing caps of £10,000 to £20,000 ($13,600 to $27,200) on individuals, while limiting businesses to around £10 million ($13.6 million). Stablecoins are already widely used for payments in the UK, with adoption of these tokens expected to grow. Executives say the proposed rules could stifle adoption, complicate enforcement, and leave the UK trailing behind the US and EU in digital finance. Bank Of England Says It Wants To Prevent Massive Outflows According to the BoE’s executive director for financial market infrastructure, Sasha Mills, the planned restrictions on systemic stablecoin ownership is part of an effort to prevent any sudden deposit withdrawals. It would also limit t...