BOE will lift the limit on stablecoin when the threat to the economy falls.

According to Bloomberg, Bank of England Deputy Governor Sarah Breeden stated that the central bank is considering implementing temporary limits on systemically important stablecoins to protect financial stability. These digital assets, if widely used, could disrupt bank deposits and affect lending activities in the real economy.

The Bank of England is considering temporarily capping the amount of stablecoin that individuals and businesses are allowed to hold or trade, with a proposed limit of £20,000 for individuals and £10 million for businesses. Ms. Breeden emphasized that these limits would be adjusted and removed as risks decrease. The aim is to strike a balance between digital financial innovation and maintaining monetary stability.

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