Bank of England Eases Fears Over Stablecoin Limits
The Bank of England has clarified its proposed limits on stablecoin holdings and transactions, stating they will be temporary safeguards to protect the UK's financial system.
Deputy Governor Sarah Breeden explained that the restrictions aim to prevent sudden liquidity shifts from banks to stablecoins. The Bank of England plans to lift the limits once stability is assured and will hold a public consultation later this year.
Meanwhile, in Europe, the Franco-German banking group ODDO BHF has launched EUROD, a euro-pegged stablecoin under the EU's MiCA regulation, strengthening Europe's role in the global stablecoin market.
The central bank's proposed restrictions on stablecoin holdings and transaction sizes will be temporary measures to ensure a smooth and stable transition for the financial system.
Author's summary: Bank of England limits on stablecoins to be temporary.
- Temporary limits on stablecoin holdings and transactions
- Public consultation to be held later this year
- EUROD launch strengthens Europe's stablecoin market role