Bank of England Plans Exemptions to Stablecoin Limits After Backlash
- The Bank of England (BoE) plans to introduce exemptions to its proposed stablecoin holding limits.
- Exemptions will be granted to firms such as crypto exchanges that require holding large amounts of tokens.
- Stablecoins can be used for settlement in the BoE's Digital Securities Sandbox.
- Initially, the BoE suggested caps of £10,000-20,000 ($13,400-$26,800) for individuals and £10 million ($13.4 million) for stablecoins.
- The digital asset industry criticized these plans as impractical.
- BoE Governor Andrew Bailey previously expressed concerns about stablecoins' impact on financial stability.
- There is increasing interest in stablecoins from traditional financial institutions and regulatory actions in the U.S. and Hong Kong.
- This move suggests a shift in the BoE's approach, aligning more closely with other financial jurisdictions.
