Bank of England Eases Fears Over Stablecoin Limits
The Bank of England clarified that its proposed limits on stablecoin holdings and transactions will be temporary safeguards to protect the UK’s financial system.
Deputy Governor Sarah Breeden explained that the restrictions are there to prevent sudden liquidity shifts from banks to stablecoins and confirmed that a public consultation will be held later this year.
The restrictions are temporary measures to ensure a smooth and stable transition for the financial system.
Meanwhile, in Europe, Franco-German banking group ODDO BHF launched EUROD, a euro-pegged stablecoin under the EU’s MiCA regulation, strengthening Europe's role in the global stablecoin market.
The Bank of England plans to lift the limits once stability is assured, reassuring the crypto industry of its commitment to a stable financial system.
Author's summary: Bank of England limits on stablecoins are temporary.