Bank of England to Impose Temporary Stablecoin Limits with No End Date

The Bank of England (BoE) will impose “temporary” caps on stablecoin holdings to protect credit availability, though no timeline has been set for their removal. Deputy Governor Sarah Breeden confirmed limits of £10,000–£20,000 for individuals and £10 million for businesses using systemic stablecoins for payments.

Breeden said the limits would remain until the transition “no longer threatens the provision of finance to the real economy,” but the BoE’s upcoming consultation offers no clear metrics for when that threshold will be met.

The plan contrasts with the U.S., where Congress recently passed the GENIUS Act establishing federal stablecoin rules without caps. Coinbase’s Tom Duff Gordon called the BoE’s proposal “bad for UK savers and bad for sterling.”

Under the framework, stablecoin issuers will hold reserves directly with the central bank and invest in short-term UK government debt. The BoE will also explore a liquidity facility to manage redemption pressure.

Despite the global stablecoin market surpassing $300 billion, sterling-pegged tokens remain under $580,000, highlighting the UK’s lag in adoption as regulatory tensions between the Bank and Treasury continue to grow.

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