UK Floats £20,000 Stablecoin Limit in Tougher Regime Than US (1)

The UK plans to temporarily impose caps on stablecoin holdings of £20,000 ($26,350) for individuals, and allow issuers to have as much as 60% of the backing assets in short-term government debt.

The Bank of England revealed a softening in its stance to regulating sterling-denominated stablecoins in revised proposals published on Monday, although its positioning still remains more strict than that of US regulators.

The BOE said stablecoins — which are cryptocurrencies pegged to another asset, usually a traditional counterpart like the US dollar or British pound — “have the potential to make payments faster, cheaper and more efficient and ...