Cryptocurrency advocates are rallying against the Bank of England's proposed limits on stablecoin holdings, arguing that such measures could harm both individual savers and the broader financial landscape in the UK. This backlash comes in response to a recent report highlighting the central bank's intentions to impose caps on stablecoin ownership. The source notes that these restrictions may stifle innovation and limit the potential benefits of digital currencies.
Concerns Over Proposed Stablecoin Caps
Tom Duff Gordon, vice president of international policy at Coinbase, expressed concerns that the proposed caps would negatively impact UK savers, the financial sector in the City, and the overall value of the pound. According to the Financial Times, the Bank of England is considering limits on individual stablecoin holdings ranging from:
- £10,000
- £20,000
while businesses could face a cap of approximately £10 million.
Justification for Restrictions
Central bankers justify these restrictions as a necessary measure to prevent significant withdrawals from traditional bank deposits, which they believe could jeopardize credit availability and financial stability. However, industry representatives warn that imposing such limits could diminish the UK's competitive edge in the rapidly evolving global stablecoin market, especially as interest in these digital assets continues to rise worldwide.
Currently, Japan is making headlines with the upcoming launch of the Nudge Card, a stablecoin credit card that promises to revolutionize everyday transactions. For more details on this innovative payment solution, check out the full story here.
