The post Why stablecoin limits are only ‘temporary safeguards’ – Bank of England explains appeared on BitcoinEthereumNews.com.

Key Takeaways Why are these stablecoin limits being proposed? Deputy Governor Sarah Breeden said unchecked outflows into stablecoins could cause a “precipitous drop in credit for businesses and households.” What are the proposed limits for individuals and businesses? Individuals could be limited to £10,000–£20,000 ($13,300–$26,600), while businesses may have higher thresholds. In a recent turn of events, the Bank of England (BoE) has pushed out a major update circulating stablecoins. The BoE signaled that its proposed limits on stablecoin holdings and transaction sizes will be temporary to safeguard financial stability. Deputy Governor Sarah Breeden weighs in Remarking on the same, Deputy Governor Sarah Breeden clarified that the measures, first outlined in a November 2023 discussion paper, aim to prevent large-scale, rapid outflows from bank deposits into stablecoins. Although the crypto industry criticizes the caps as a potential barrier to innovation, the BoE insists that the restrictions protect the broader financial system. She added that these limits would stay until the transition to digital money no longer risked funding availability in the real economy. “So let me be clear. We would expect to remove the limits once we see that the transition no longer threatens the provision of finance to the real economy.”  Inside the proposed limits She warned that unchecked outflows into stablecoins could trigger a “precipitous drop in credit for businesses and households” if banks cannot scale wholesale financing quickly enough. The new proposal sets individual limits between £10,000 and £20,000 ($26,778), with higher thresholds for businesses, distinguishing the U.K. from other major economies. Additionally, the BoE will launch a formal consultation on the updated regulatory framework, including limit levels, next month. Yet, despite these challenges, the UK crypto sector cautiously welcomed the BoE’s openness to possible exemptions, urging the central bank to review and recalibrate the cap. For…

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Filed under: News - @ October 16, 2025 9:29 pm