The crypto industry against the limits of the Bank of England on stablecoins

The Bank of England is considering the introduction of limits on the ownership of stablecoins: up to 10-20 thousand pounds for citizens and up to 10 million for companies. The restrictions will only affect systemic stablecoins (those that are widely used or can be used for settlements within Britain) and are aimed at reducing the risks of a massive outflow of deposits from banks.

Industry representatives warn that this will hit the City of London and make Britain less competitive compared to the United States and the EU, where there are no such limits. Coinbase stated that the measures would negatively affect depositors and the pound, while the UK Cryptoasset Business Council noted that their administration would be extremely costly.

The Bank of England stressed that the restrictions may be temporary to allow the market to adapt. Meanwhile, the Ministry of Finance, headed by Rachel Reeves, declares its support for blockchain technologies. The global stablecoin market is estimated at $288 billion.