Overview

• Governor Andrew Bailey says stablecoins could partially separate money holding from credit provision, with banks and non‑banks coexisting in a reshaped system.
• The Bank of England is preparing a consultation on a systemic regime that would allow widely used tokens to hold accounts at the central bank for payments and settlement.
• Safeguards under consideration include backing only with risk‑free assets, insurance and statutory resolution arrangements, and assured convertibility without reliance on crypto exchanges.
• Proposals include holding caps of £10,000–£20,000 for individuals and up to £10 million for businesses to curb rapid outflows from bank deposits.
• Industry reaction has been critical, with Coinbase’s Tom Duff Gordon arguing the caps would harm UK savers and are not used by other major jurisdictions.