@vcococ
Bank of England launches consultation on stablecoin regulation
Under the current proposal, stablecoin issuers would have to:
- Hold at least 40% of their collateral in non-interest-bearing deposits with the Bank of England (BoE).
- Up to 60% in short-term UK government bonds.
In terms of holding limits, the BoE sets:
- £20K (~$26.3K) per individual
- £10M (~$13.4M) per business, with exemptions for larger companies where needed, such as supermarkets or crypto exchanges.
→ These limits are temporary and will be relaxed or removed as risks abate.
The BoE's current stance is seen as softer than the 2023 draft, which proposed that all collateral assets be deposited with the central bank.
The consultation will be open for comments until 10 February 2026, before the BoE finalises and publishes the final rules in the second half of next year.
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