Bank of England Reverses Stablecoin Decision: $50 Billion Limit Set
The Bank of England (BoE) has dropped the strict stablecoin limits it planned for individual wallets, instead setting a $50.6 billion cap on total supply.
As regulatory winds blow through the cryptocurrency world, the Bank of England has stepped back from a controversial decision. The Bank announced the cancellation of previously proposed individual limits that restricted how much stablecoin—digital assets pegged to traditional currencies like the dollar—users could hold. This decision, following intense pressure from the industry and the House of Lords, aims to preserve the United Kingdom’s competitiveness in the digital asset market.
The previous plan envisioned holding limits of 20,000 pounds for individuals and 10 million pounds for companies. While these restrictions have been completely removed under the new regulation, an issuance limit totaling 40 billion pounds—approximately $50.6 billion—has been introduced for each systemically important stablecoin instead. This move aims to increase transactional freedom for both individual users and large businesses while maintaining the stability of the financial system.
New Reserve Rules for Stablecoin Issuers
The Bank also provided flexibility regarding how issuers will manage their reserves. Companies will be allowed to invest 70 percent of their reserves in UK government bonds with a maturity of less than six months. The remaining 30 percent will be held in non-interest-bearing central bank accounts. While this allows companies to generate income, paying direct interest to users simply for holding the asset will remain prohibited.
Any citizen walking past the Bank of England building—the heart of finance with its grand architecture—will be able to use these digital assets without restriction thanks to the new rules. The Bank plans to fully remove these safeguard limits as the market stabilizes. Following the final feedback process in September, the UK’s comprehensive crypto rules are expected to officially come into force in 2027.