The English central bank is easing its restrictions on stablecoins after opposition from the cryptocurrency industry.
Bank of England (Bank of England) Announce It announced on Monday (June 22) that it would not introduce the temporary holding limits on stablecoins it had been considering. Instead, the bank will apply “temporary issuance guardrails” to “every systemic stablecoin,” which has been initially set at £40 billion.
“This is a major milestone in delivering more choice and innovation in payments in the UK,” Sarah Breeden, the bank’s deputy governor for financial stability, said in a press release. “Innovation thrives on trust.”
“And today we are laying the foundations of that trust for a new form of money – with instant redemption, strong protection and central bank support. This is a truly world-leading system.”
In addition to the £40 billion cap, the Bank of England increased the maximum share of stablecoins allowed to be held in interest-bearing assets from 60% to 70%, with the remainder in central bank deposits.
“These deposits enable exporters to meet redemptions promptly. The change supports more viable business models while allowing exporters to deal with outflows,” the Bank of England said.
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The bank had proposed a temporary Ownership boundaries On UK stablecoins worth £20,000 each for individuals and £10 million for businesses, to prevent a large outflow of deposits from banks.
However, Breeden told the Financial Times last month that the regulator was considering alternatives to this plan.
“What we have heard from industry is that the way we have proposed to implement the limits is Operationally cumbersome “So we’re really open to thinking about whether there are other ways to achieve our goal,” she added.
The new rules come at a time when stablecoins appear to be “finding their way with CFOs,” as PYMNTS wrote last week.
However, this shift does not mean that CFOs view stablecoins as a “financial revolution, but as a controlled means of moving money through more familiar banking channels.”
“Waiting for certainty: Why most CFOs are retreating from cryptocurrencies and stablecoinsA recent installment of PYMNTS Intelligence’s 2026 Certainty Project shows that most mid-market companies remain cautious about digital assets. Usage is limited, with 13% of companies using stablecoins and 5% of them using other cryptocurrencies.
“However, the data also shows that so are financial sector leaders Do not reject all digital assets “Equally,” PYMNTS wrote, “stablecoins appear to have a more practical path forward because they are tied to traditional currency and may fit more easily into payment and treasury workflows.”
