Summary
- The BOE’s deputy governor said there has been a lack of constructive discussion on stablecoin regulation and that the central bank is willing to amend its proposals.
- The U.K. has limited stablecoin holding caps to £20,000 for individuals and £10 million for companies.
- A BOE draft proposal stipulated that stablecoin issuers hold 40% of total issued assets as non-interest-bearing deposits at the central bank, adding it would review whether the ratio is overly conservative.
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The Bank of England (BOE) has signaled the possibility of revisiting its stablecoin regulatory framework.
According to Reuters on the 11th (local time), BOE Deputy Governor Sarah Breeden said there had been a lack of constructive discussion on stablecoin regulation and that the central bank is willing to amend its proposals. The BOE previously ran a consultation process in November last year to gather views on drafting rules for pound sterling-denominated stablecoins.
Caps on stablecoin holdings are one of the core pillars of the U.K. regime. The U.K. has limited stablecoin holdings to £20,000 for individuals and £10 million for companies. A BOE draft proposal also stipulated a requirement for stablecoin issuers to hold, as non-interest-bearing deposits at the central bank, an amount equal to 40% of total issued assets.
Breeden stressed that the BOE is "open to different approaches" to meeting its financial stability objectives. She added, "Instead, companies did not present alternative solutions," and said the BOE would "review whether (the central bank deposit ratio, too) is overly conservative."
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
