BOE Sets £40 Billion Stablecoin Cap and Drops Holding Limit (1)

The Bank of England has scrapped plans to limit how much firms and households can hold in UK stablecoins and instead introduced a temporary £40 billion ($52.8 billion) cap for the total issuance of each coin.

In a new draft code of practice for the use of systemic stablecoins, issuers will also be able to hold a greater share of interest-bearing UK government bonds as the main backing asset for the cash-like digital currency than previously planned.

The changes, which come after a period of consultation with the industry, aim to make sterling stablecoins more commercially viable and easier to ...