Overview

• Deputy Governor Sarah Breeden warned that rapid deposit shifts into stablecoins could cause a sharp drop in credit to households and businesses.
• The central bank will consult next month on proposed holding limits for individuals and companies.
• The largest businesses would likely be exempt from the caps so they can hold more when required.
• Systemic sterling tokens would be overseen by the Bank of England, with the FCA supervising other stablecoins, and a Treasury-backed resolution regime is in development.
• The Bank expects to finalise the UK stablecoin framework next year, which it says is in line with U.S. timelines.