BOE Will Lift Stablecoin Limits Once Threat to Economy Eases (1)

The Bank of England will lift proposed limits on the amount of stablecoins individuals and businesses can hold once the digital assets stop being a threat to the economy.

Deputy Governor Sarah Breeden said on Wednesday that the rapid adoption of stablecoins risked causing “significant” outflows of deposits from banks, which could then prevent credit reaching businesses and households.

To prevent that, the BOE is considering different tools, including limits on “customer’s holdings of systemic stablecoins, aggregate limits on the overall size of the coin, and limits on transaction size,” she said.

However, these will be “temporary” and the central ...