PANews March 12 news, according to Bloomberg, Sarah Breeden, deputy governor of the Bank of England, hinted that regulators may soften their strict stance on stablecoin holding caps, after the proposal triggered strong opposition from the digital asset industry. The central bank proposed in November last year to set a temporary holding limit of 20,000 pounds for individuals and 10 million pounds for businesses for stablecoins considered systemically important to prevent risks caused by sudden transfers of customer deposits from banks to stablecoins. But stablecoin issuers and the crypto industry have warned that these caps are difficult to enforce and could stifle innovation.
Breeden told a House of Lords committee that the central bank was “open to other ways” of achieving its goal of protecting the UK economy and was reviewing feedback received on a consultation paper last November. She acknowledged the technical difficulties in implementing the cap, including how to effectively track token holders and holdings in secondary market transactions, as well as the cost-effectiveness of building systems for temporary limits. The central bank plans to finalize the regulations by the end of the year.
