🚨 STABLECOIN, BANK OF ENGLAND IMPOSES A LIMIT OF £20,000 TO AVOID SYSTEMIC CRISIS 🚨
The Bank of England has proposed a temporary limit on the holding of stablecoins of £20,000 for each individual, with the aim of preventing a potential systemic crisis that may arise from the massive shift of money from bank accounts to state or private stablecoins, such as USDT or USDC.
This phenomenon, known as "flight to stablecoins", would significantly reduce liquidity in the traditional banking system, undermining banks' ability to issue loans and support the real economy.
The limit aims to balance interest in new forms of private digital money, increasingly used for payments and transfers, with the need to maintain financial stability.
The proposal also includes higher thresholds for businesses, up to £10 million, and primarily targets systemic stablecoins denominated in pounds, used for payments and settlements.
The main concern is that the adoption of stablecoins outside the control of banks may lead to a crisis of confidence and a collapse of the traditional banking system.
The measure from the Bank of England is therefore a safety brake, which allows for innovation without hindering it, while protecting the sovereignty and functionality of the national financial system.
The money of the future is the money of the private sector, not the States....
