TechFlow News, March 12: According to The Block, Sarah Breeden, Deputy Governor of the Bank of England, stated that the central bank is open to revising the proposed limits on sterling-pegged stablecoins and is willing to consider alternative approaches to managing financial stability risks.
Previously, in November last year, the Bank of England proposed caps on individual holdings of sterling-pegged stablecoins at £20,000 and corporate holdings at £10 million. It also required issuers to hold at least 40% of their reserves as interest-free deposits with the central bank—a proposal that drew widespread criticism from the crypto industry. The central bank is currently reviewing feedback from stakeholders and plans to publish an updated draft of the rules in June, with the final regulatory framework expected by year-end.
