england

According to Cointelegraph, Sarah Breeden, Deputy Governor of the Bank of England, testified before the House of Lords Financial Services Regulatory Committee that the central bank is open to methods for managing the risks of stablecoins and is not limited to implementing a holding limit.Breeden pointed out that the proposed holding limit aims to prevent a large influx of bank deposits into stablecoins, which could potentially restrict lending and reduce the supply of credit to businesses and households. She stated, "We are indeed open to other ways of achieving this goal. I think you heard others mention during the inquiry that this risk to credit provision is real."

According to Bloomberg, Bank of England Deputy Governor Sarah Breeden hinted that regulators may soften their strict stance on the holding limits for stablecoins, which had previously sparked strong opposition from the digital asset industry.The central bank proposed last year to set temporary holding limits of £20,000 for individuals and £10 million for businesses on stablecoins deemed systemically important, to prevent the risk of customer deposits suddenly shifting from banks to stablecoins. However, stablecoin issuers and the crypto industry warned that these limits would be difficult to enforce and could stifle innovation. Breeden stated during her appearance before the House of Lords committee that the central bank is "open to other ways" to achieve the goal of protecting the UK economy and is reviewing the feedback received from the consultation document issued last November.She acknowledged the technical difficulties in implementing the limits, including how to effectively track token holders and holdings in secondary market transactions, as well as the cost-effectiveness of building systems for temporary restrictions. The central bank plans to finalize the regulations by the end of the year.

Nomura Securities expects the Bank of England to cut interest rates by 25 basis points in April and July, whereas the previous forecast was for cuts in March and June.

The Bank of England has announced the launch of the "Synchronisation Lab" program, which will collaborate with 18 companies to test how to achieve the settlement of tokenized assets in pounds through distributed ledger technology.This six-month pilot will begin in the spring of 2026, with participants including market infrastructure providers, banks, and Web3 companies (such as Chainlink and UAC Labs). The pilot aims to validate the design choices of the central bank regarding synchronous settlement, assess the interoperability between central bank money and tokenized assets, and provide references for the modernization of the UK's Real-Time Gross Settlement (RTGS) system.

According to Bloomberg, Bank of England Deputy Governor Dave Ramsden stated that the UK may need to provide a protection mechanism for stablecoin deposits similar to that of bank deposits.Ramsden pointed out that the central bank is considering how to maintain public trust in currency in the event of a collapse of a systemically important stablecoin. He suggested that long-term trust in stablecoins may require the establishment of a plan similar to bank deposit insurance, ensuring that stablecoin holders have priority creditor status in bankruptcy proceedings under statutory liquidation arrangements. Ramsden's remarks indicate that the Bank of England may extend the current protections for bank deposits to widely used stablecoins. The Bank of England has raised the protection limit for the public's regular cash deposits from £85,000 to £120,000 to guard against bank failures. The Bank of England plans to implement stablecoin regulatory rules by the end of the year.

According to Jinshi reports, the Bank of England has lowered the benchmark interest rate from 4.00% to 3.75%, in line with market expectations, after pausing the pace of quarterly rate cuts since August 2024.

According to CoinDesk, a coalition of MPs from various parties in the UK has written to Chancellor of the Exchequer Rachel Reeves, urging modifications to the Bank of England's proposed stablecoin framework to prevent stifling innovation and capital flight.The MPs warned that the Bank of England's draft framework restricts the use of stablecoins in wholesale markets, prohibits interest on reserves, and sets a holding limit of £20,000, which could undermine the appeal of the City of London as a global financial center, forcing investors to turn to dollar-pegged alternatives. The letter calls for the establishment of a forward-looking stablecoin framework to ensure international investment, support the growth of high-value fintech, and reinforce the UK's position as a global innovation hub.

According to Bloomberg, a cross-party group of MPs in the UK has urged Chancellor of the Exchequer Rachel Reeves to oppose the Bank of England's proposal to set a cap on the amount of stablecoins held in the country, stating that the bank's policy would undermine the government's efforts to position the UK as a leader in the digital asset space.In a letter to Reeves, members of the House of Lords, including CMC Markets Plc CEO Peter Cruddas, expressed that the Bank of England's plan to limit the amount of stablecoins individuals can hold would not reduce risk but rather drive capital overseas. The group wrote, "We are deeply concerned that the UK is gradually moving towards a fragmented and restrictive approach that will stifle innovation, limit adoption, and push activity offshore."Last month, the Bank of England unveiled its proposed stablecoin rules, stating that it would temporarily set a cap of £20,000 (approximately $26,350) on individual stablecoin holdings and a cap of £10 million for businesses. The bank also requires issuers of tokens pegged to the pound to hold at least 40% of the reserves backing the token as interest-free deposits at the central bank. These proposals have been criticized by cryptocurrency companies, which argue that they are overly stringent.

According to Jinshi reports, Bank of England Deputy Governor Briden stated that we need to do more work to guide consumers in identifying the unsafe tokens issued by El Salvador. Previous events involving Silicon Valley Bank and Circle withdrawals have provided guidance for the latest stablecoin proposals. Weakening stablecoin regulation poses risks. The UK needs to take a different approach to stablecoin issues compared to the United States.

The Bank of England proposed that among the assets supporting stablecoins, 60% can be held in short-term UK government bonds, and at least 40% must be held at the Bank of England.The Bank of England proposed a limit of £20,000 on individual stablecoin holdings, while the limit for corporate stablecoin holdings is £10 million.Stablecoins transitioning from the regulatory framework of the Financial Conduct Authority (FCA) can have up to 95% of their reserve assets invested in short-term government bonds.

According to Bloomberg, Bank of England Deputy Governor Sarah Breeden stated that the UK's new stablecoin regulatory framework will be implemented "as quickly as in the U.S." in response to industry concerns that the UK may be lagging in establishing a stablecoin regulatory regime.Breeden pointed out that there are differences between the UK and the U.S. in terms of restrictions on stablecoin holdings, primarily because the UK mortgage market is more reliant on commercial bank loans.

ChainCatcher news, according to Bloomberg, the Bank of England will launch a stablecoin regulatory consultation on November 10, aiming to establish a complete regulatory framework by the end of 2026.The new regulations will closely align with U.S. rules, focusing on bonds that support digital assets. This move aims to address the financial stability risks posed by the proliferation of digital currencies, but it is reported that the topic has already caused tensions between the central bank and the government.

ChainCatcher news, according to Bloomberg, the Bank of England has stated that it will lift the proposed limits on the amount of stablecoins held by individuals and businesses once digital assets no longer pose a threat to the economy.Deputy Governor Sarah Breeden pointed out that if stablecoins become widely adopted quickly, it could lead to a "massive" outflow of bank deposits, which would hinder the flow of credit to businesses and households. To address this, the Bank of England is considering implementing restrictions, including the amount of systemic stablecoins customers can hold, the overall scale of stablecoins, and transaction volumes, but these restrictions are only "temporary" and will be lifted once it is determined that "the transition no longer threatens financing for the real economy."Previously, experts expressed concerns that restrictions would hinder the adoption of stablecoins pegged to the pound, and this statement indicates a clear softening of the Bank of England's policy stance. Breeden also mentioned that if initial regulations are lenient and the usage of stablecoins surges, there may be a need to revise the rules later, although large companies could be exempted from holding more stablecoins if necessary.In response to criticisms about the UK's lagging position in the stablecoin sector, she disagreed and stated that the UK will launch a consultation later, finalizing the regulatory framework next year, aligning with the goals of the United States.

ChainCatcher news, Bank of England Deputy Governor Sarah Breeden stated that once stablecoins no longer pose a threat to the economy, the Bank of England will lift the proposed limits on the amount of stablecoins individuals and businesses can hold.Breeden pointed out that the rapid adoption of stablecoins could lead to a "massive outflow" of bank deposits.

ChainCatcher news, according to Bloomberg, the Bank of England plans to exempt proposed limits on corporate stablecoin holdings, indicating a softening of its stance on crypto assets in the face of competition from the United States.Insiders revealed that the Bank of England intends to grant exemptions to businesses such as cryptocurrency exchanges that need to hold large amounts of stablecoins, and also allow companies to settle in stablecoins within experimental digital securities sandboxes. This suggests that Governor Andrew Bailey's previously skeptical attitude is easing, although the Bank of England declined to comment. The digital payments industry is concerned that the UK will struggle to compete with the U.S. "Genius Act," and the Bank of England plans to set limits on personal and corporate stablecoin holdings, with a consultation document expected to outline this by the end of the year. Previously, Bailey had denied the stablecoin and digital pound projects, and this exemption is seen as a significant shift.

ChainCatcher news, according to Jinshi reports, the Bank of England plans to grant exemptions to its proposed limits on stablecoin holdings, allowing cryptocurrency exchanges and other specific businesses to hold larger amounts of stablecoins. These restrictions are expected to be announced by the end of this year, and businesses will be allowed to use stablecoins as settlement assets in the "digital securities sandbox." Previously, it was reported that several crypto companies are lobbying the Bank of England to reconsider its limits on stablecoin holdings.

ChainCatcher news, according to Jinshi reports, Bank of England Governor Andrew Bailey stated that any stablecoin widely used in the UK in the future should be able to connect to the Bank of England's accounts to strengthen its monetary status.Bailey also pointed out that stablecoins could help drive the financial system's transition from a commercial lending model.

ChainCatcher news, Bank of England Governor Bailey stated on Monday that he and other agencies responsible for regulating the financial services industry should utilize artificial intelligence to help identify issues within the firms they oversee. He pointed out that the central bank and other regulatory bodies have collected a vast amount of data, but "I don't think anyone can confidently say we are optimally utilizing this data... This also poses risks for regulators: you have the evidence but fail to use it, only to realize later that there were 'key clues' in your system all along."Bailey reiterated that he believes calls for reducing financial regulation should not lead the financial services industry back to high-risk behaviors that could jeopardize the broader economy.

ChainCatcher news, according to the Financial Times, cryptocurrency institutions are calling on the Bank of England to abandon plans to limit stablecoin holdings, which would make the UK's regulation of this rapidly growing market stricter than that of the US or the EU.The Bank of England plans to impose holding limits on all systemic stablecoins: a personal holding limit of £10,000 to £20,000 and a corporate holding limit of £10 million. The central bank is concerned that these tokens could weaken the banking system by siphoning off bank deposits. Tom Duff Gordon, Vice President of International Policy at Coinbase, stated, "Setting limits on stablecoins is detrimental to UK savers, the City of London, and the pound, and no other major jurisdiction sees the need to impose limits." Simon Jennings, Executive Director of the UK Cryptoassets Business Council, pointed out that stablecoin issuers cannot identify token holders in real-time, and enforcing limits would require expensive and complex new systems.

ChainCatcher news, according to Jinshi reports, Bank of England Monetary Policy Committee member Green stated that the risks of persistent inflation have increased.