The UK crypto industry has voiced opposition to the Bank of England's proposals to limit individual holdings of stablecoins, calling for greater flexibility.
Bank of England's Proposals
In November 2023, the Bank of England released a discussion paper suggesting caps on individual holdings of digital pounds ranging from £10,000 to £20,000 and considering a lower limit of £5,000.
Criticism from the Crypto Industry
Industry representatives criticized these proposals as impractical and costly. Tom Duff Gordon, Vice President of International Policy at Coinbase, noted that such cap measures would negatively impact UK savers.
General Concerns and International Trends
The scrutiny of stablecoin regulations extends beyond the UK. Regulators in other countries, including the US and European nations, are also expressing concerns about stablecoins as potential destabilizers of the traditional financial system.
Discussions around stablecoins highlight the need for financial systems to adapt to new technologies and the importance of finding effective regulatory models that address the interests of all stakeholders.
