😳United Kingdom🇬🇧: The Bank of England will limit stablecoin ownership

😳United Kingdom🇬🇧: The Bank of England will limit stablecoin ownership

The Bank of England’s cautious stance reflects concerns that the widespread adoption of stablecoins could drain deposits from traditional banks and undermine financial stability. At the same time, the UK crypto community has voiced strong opposition.

▶️The central bank has proposed the following holding limits: between £10,000 and £20,000 for individuals (USD 13,500 – 27,000) and up to £10 million (USD 13,500,000) for businesses.

▶️Industry representatives, including Coinbase, argue that such an approach is inappropriate and that restrictions would negatively affect both UK depositors and the British pound. Moreover, since no other European country enforces such measures, issuers would technically be unable to track who holds their tokens at any given moment.

▶️While technically possible, doing so would be a highly expensive process. According to the UK Crypto Assets Council, such monitoring would require the use of digital identities or constant wallet-to-wallet coordination, demanding complex infrastructures and significant investment.

▶️Another sensitive issue lies in the clash of perspectives: these restrictions could intensify tensions between the Bank of England and the Treasury, the latter having expressed stronger support for digital innovation in finance.

▶️Context: in parallel, the Bank of England, together with the FCA, is developing a regulatory framework for digital tokens linked to fiat currencies.

#news #Europe #crypto

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