Bank of England says it will remove stablecoin restrictions once economic threat eases

The Bank of England stated that it will lift the proposed restrictions on the number of stablecoins held by individuals and businesses after digital assets no longer pose a threat to the economy. Deputy Governor Sarah Breeden pointed out that if stablecoins become popular quickly, it may trigger a "large-scale" outflow of bank deposits, which in turn hinders the flow of credit to businesses and households. To this end, the Bank of England is considering taking restrictive measures, including the number of systemic stablecoins held by customers, the overall size of stablecoins and the size of transactions, but these restrictions are only "temporary" and will be lifted once it is determined that "the transition no longer threatens financing of the real economy." Previously, experts worried that restrictions would hinder the popularity of stablecoins pegged to the pound. This statement shows that the Bank of England's policy stance has softened significantly. Breeden also said that if the initial supervision is relaxed and the use of stablecoins surges, the rules may need to be revised later, but large companies may be exempted from holding more stablecoins if necessary. For the UK's lagging behind in the field of stablecoins, the Bank of England has issued a statement.