Bank of England to publish stablecoin regulatory proposal on the 10th…"Will align with the United States"

The Bank of England (BOE) said it will publish a stablecoin regulatory proposal on the 10th and indicated it will not fall behind the pace of regulatory progress in the United States.

On the 5th (local time), Bloomberg reported that Sarah Breeden, deputy governor of the Bank of England, said, "The UK will not be slower than the US in establishing a supervisory framework for stablecoins," adding, "Our regulatory framework will operate at a similar pace to that of the United States."

She went on to say, "We plan to publish an official consultation on stablecoin regulation on November 10," explaining that the proposal would apply to 'systemic (Systemic) stablecoin' that are likely to be widely used for payments. Other smaller stablecoins would receive more relaxed regulation under the supervision of the Financial Conduct Authority (FCA).

Bloomberg said the proposal would include a temporary cap limiting holdings to 20,000 pounds (about 26,000 dollars) for individuals and 10,000,000 pounds (about 13,000,000 dollars) for companies. Breeden explained the rationale for such measures, saying, "Because the UK's mortgage market is bank-centric, it is particularly vulnerable to a rapid shift of deposits into stablecoins."

Breeden emphasized, "Our objective, as in the United States, is to have the new regime work swiftly," adding, "We will secure domestic financial stability while maintaining competitiveness."

The move is interpreted as part of the UK's strategy to avoid falling behind in the crypto-asset regulatory competition with the United States and the European Union (EU). Last month, the UK government announced it would appoint a 'Digital Markets Champion' to pursue wholesale finance market modernization using blockchain technology.