Overview

• According to Bloomberg, the BoE intends to grant exemptions for certain firms, including crypto exchanges, from proposed per‑holder limits on systemic stablecoins.
• Regulated stablecoins would be allowed as settlement assets in the Digital Securities Sandbox, with initial use focused on non‑sterling tokens to test real‑world cases.
• A consultation paper due by year‑end is expected to set out the detailed approach, including any caps, waivers and safeguards the BoE will require.
• Earlier proposals outlined caps of roughly £20,000 for individuals and £10 million for businesses to reduce the risk of rapid deposit outflows from banks.
• Industry bodies argue the caps are hard to enforce and risk eroding the UK’s edge versus the U.S. under the GENIUS Act and the EU’s MiCA, while Governor Andrew Bailey has recently emphasized stablecoins’ potential for payments innovation.