Overview
- Deputy Governor Sarah Breeden said the Bank will lift holding caps only once it judges they no longer threaten financing for the real economy, with no fixed end date set.
- The proposal under discussion points to £10,000–£20,000 limits per individual and higher allowances for businesses, with some drafts citing up to £10 million for firms.
- A consultation due in the coming weeks will seek views on cap levels and implementation, with likely carveouts for the largest companies and potential exemptions for digital sandbox participants.
- Systemic sterling stablecoins would fall under direct Bank of England oversight while the Financial Conduct Authority would supervise non‑systemic issuers under a lighter regime.
- The Bank is working with the Treasury on a resolution framework and plans to offer central‑bank accounts for systemic issuers, with reserves held at the Bank and a potential liquidity facility for redemptions.