TechFlow news, September 15 — According to the UK's Financial Times, cryptocurrency firms are urging the Bank of England to abandon its plan to cap stablecoin holdings, a move that would make the UK's regulation of this rapidly growing market stricter than that of the US or EU.
The Bank of England plans to impose holding limits on all systemic stablecoins: a personal cap of £10,000 to £20,000 and a corporate cap of £10 million. The central bank fears these tokens could undermine the banking system by drawing deposits away from banks.
"Capping stablecoin holdings is bad for UK savers, the City, and sterling—no other major jurisdiction sees a need for such caps," said Tom Duff Gordon, Vice President of International Policy at Coinbase. Simon Jennings, Executive Director of the UK Cryptoassets Business Council, noted that stablecoin issuers cannot identify token holders in real time, and enforcing caps would require costly and complex new systems.
