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According to Cointelegraph, Federal Reserve Governor Christopher Waller and Bank of England policymaker Megan Greene expressed starkly different views on the prospects of stablecoins at the Dubrovnik Economic Conference. Waller stated that the growth in the use of dollar-backed stablecoins could enhance the global influence of U.S. monetary policy, describing stablecoins merely as payment tools, "neither evil nor dangerous," and only bringing competition to the payment sector.Greene, on the other hand, held an opposing view, believing that tokenized deposits could replace stablecoins within a few years, stating, "In five years, we might wonder why we were talking about stablecoins." Greene compared central bank digital currencies to "turtles," stablecoins to "rabbits," and tokenized deposits to "rhinos," predicting that the rhino would ultimately prevail.

According to The Block, Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, presented a vision for the digitization of the UK financial system at the 2026 London City Week conference, focusing on the integration of regulated stablecoins. A draft rule for systemic stablecoins is planned to be released next month, with the final version to be completed by the end of the year. Breeden pointed out that future retail payment systems should include various interchangeable forms of currency, including digital deposits and stablecoins.She stated that shared ledger technology is expected to reduce payment costs and accelerate processing speeds, minimizing intermediaries. In addition, smart contracts support customization, conditionality, and automation, further enhancing the efficiency of retail payments. Breeden emphasized that the Bank of England will actively support the responsible adoption of AI technology, including agent payments and commercial transactions.

According to Cointelegraph, Bank of England Deputy Governor Sarah Breeden stated that tokenization can reduce settlement costs, speed up processes, and promote competition, provided that trust and interoperability are ensured. Breeden emphasized that even in the context of private sector innovations such as tokenized deposits and regulated stablecoins, central bank money will remain the cornerstone of the monetary system. She mentioned that the Bank of England is working with industry, government, and regulators to build a framework that supports innovation without compromising financial stability.Breeden stated that, in addition to traditional bank deposits, people should also be able to make payments using tokenized deposits, regulated stablecoins, and retail central bank digital currencies, and that increased competition in technologies and business models will lower user costs and improve functionality. The Bank of England also proposed on Monday to extend the operating hours of its core settlement infrastructure to nearly 7x24 hours to support cross-border payments and securities settlement.

According to Bloomberg, the Bank of England is considering an alternative in response to the industry's opposition to the proposed limits on stablecoin holdings. Bank of England Deputy Governor Sarah Breeden stated that the central bank is exploring the possibility of setting a temporary "guardrail" on the total issuance of stablecoins as an alternative option to the existing proposal. This statement indicates that the Bank of England is reassessing its regulatory framework for stablecoins.

The Financial Conduct Authority (FCA) and the Bank of England (BOE) jointly launched a public consultation on Monday, seeking industry input on the regulation, infrastructure, and market practices of tokenized wholesale financial markets in the UK. This consultation is part of the UK's digital finance market strategy, focusing on tokenized securities and post-trade infrastructure, covering areas such as prudential regulation, tokenized collateral, and settlement tools. Regulators stated that there are significant opportunities in the post-trade processes and collateral management areas for tokenization. The consultation targets banks, investment firms, asset management institutions, central securities depositories (CSD), central counterparty clearing houses (CCP), trading platforms, fintech companies, and others. The current scope mainly involves tokenized bonds, stocks, and fund shares, with potential future expansion. Market participants can submit feedback by July 3. The FCA and the Bank of England plan to publish a feedback document in the summer of 2026 and launch a roadmap for the development of the digital wholesale market within the year.Meanwhile, UK regulators are advancing the "digital securities sandbox" program, with 16 companies having passed the first phase of review and currently testing the issuance, trading, and settlement of tokenized securities. Additionally, the Bank of England has separately released a consultation document on extending the operating hours of the RTGS and CHAPS systems, planning to gradually move towards a near 7×24 hour operating model, with the goal of launching synchronized settlement services by 2028 to support tokenized assets as collateral for central bank operations and central counterparty use.

According to Decrypt, Bank of England Executive Director Sasha Mills stated that the Bank of England views stablecoins as "a new form of currency" and will not "pick winners" between tokenized deposits and stablecoins. Mills mentioned that the Bank of England will open applications for "systemic stablecoins" by the end of the year, which are widely used for payments and may pose risks to financial stability, and will be regulated by the central bank.Matthew Long, Director of Payments and Digital Assets at the Financial Conduct Authority, stated that other stablecoins are regulated by the FCA, and there is still room for pound-denominated stablecoins to play a role. Mills also pointed out that 99% of stablecoins globally are dollar-denominated and do not comply with the U.S. GENIUS Act, and the UK is aligned with the U.S. on the timeline.

According to Bloomberg, the UK Treasury and the Bank of England are discussing slowing down the progress of the "Britcoin" digital pound project, with the "advance or halt" decision originally scheduled for this summer possibly being changed to a temporary pause.Sources say that regulators want to first observe the progress of banks in areas such as tokenized deposits, as these private innovations may achieve some similar rapid low-cost payment functions to CBDCs or stablecoins within the existing regulatory framework. The digital pound is currently nearing the end of its design phase, but it faces public, parliamentary, and some officials' doubts regarding privacy, necessity, and its impact on the commercial banking system. Internal research from the Bank of England also shows that as digital payment methods improve, the marginal benefits of launching a retail CBDC are declining.

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.