Overview
- Issuers of widely used stablecoins would be permitted to hold up to 60% of backing assets in short-term government debt under the proposal.
- The framework would require 40% of the assets backing such tokens to be held with the Bank of England.
- Only stablecoins judged capable of becoming widely used for payments would fall under the Bank’s regime, with non-systemic tokens overseen by the FCA.
- The Bank has kept plans for temporary caps on how much individuals and businesses can hold, with potential exemptions for larger firms and no direct parallels in other major financial centres.
- Officials are considering a central bank liquidity facility for market stress and have outlined a temporary regime that would let some issuers initially invest up to 95% of backing assets.