The proposal to limit stablecoins by the Bank of England has been criticized as "restrictive"
The Bank of England (#BoE ) is facing opposition from crypto groups and financial experts regarding the proposal to limit the number of stablecoins that individuals and businesses can hold. The proposal aims to restrict stablecoin deposits from £10,000 to £20,000 for individuals and £10 million for businesses.
Risks and Opposition
Central banks argue that these limits are necessary to prevent large sums of money from flowing out of traditional bank deposits, which could threaten credit supply and financial stability. However, critics such as Coinbase and Uniform Labs argue that these limits would be detrimental to savers, the financial center of London, and the pound sterling. Tom Duff Gordon from Coinbase stated that no other major regulatory jurisdiction imposes similar limits. #England
The UK Risks Falling Behind
The UK's approach starkly contrasts with the US, where the recent GENIUS Act has created a licensing framework for stablecoin issuers without imposing limits. Experts warn that if these limits are applied, the UK could fall behind the US and EU in the digital asset space. Instead of imposing limits, a better approach would be to embrace innovation and build competitive capacity for the pound sterling in the digital financial world. #anh_ba_cong
