The post Crypto News: Bank of England Proposes Temporary Stablecoin Holding Limits appeared on BitcoinEthereumNews.com.

The Bank of England proposes a £10 million stablecoin holding for businesses to shield UK bank deposits and secure vital real-economy credit, triggering industry debate. Senior officials within the Bank of England are now actively considering strict temporary stablecoin holding limits. This important step is to ensure that critical legacy banking liquidity is not attacked by huge liquidity flows in digital assets. Deputy Governor Sarah Breeden recently gave her stamp of approval to the central bank’s landmark regulatory proposal focused on this sector of the domestic economy. Central Bank Unveils Protective Holding Caps to Stabilize UK Deposits In particular, the BoE is suggesting a maximum limit of GBP10 million on all corporate stablecoin holdings. The limit on the amount that private individuals can give, currently between GBP10,000 and GBP20,000, will be tighter. These properly differentiated thresholds accurately reflect the different roles fulfilled within the complex financial system. As a result of this, these thresholds are set up to strategically hedge large-scale systemic risk across key sectors. Related Reading: Stablecoin News: Bank of England May Exempt Stablecoin Limits for Crypto Exchanges | Live Bitcoin News Deputy Governor Breeden said that the rapid acceptance of digital assets posed a threat of severe bank deposit outflows. Such unprecedented large withdrawals would have a material impact on their vital role in providing much-needed credit to UK households. As a result, this potential instability has the potential to cause a critical loss of working capital that is essential to ensure the smooth daily functioning of the real economy. Finally, in proposing an appropriate residual allocation of clear regulatory authorities between two existing financial authorities in the UK. The Bank of England will directly regulate systemic sterling stablecoins in respect of their potential systemic impact on stability. Therefore, the remaining non-systemic stablecoins will be supervised by…

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Filed under: News - @ October 16, 2025 7:24 am