🚨 UK MPs unite against central bank stablecoin limits: risks stifling innovation and escalating capital outflow

Bloomberg reports:

A cross-party group of UK MPs has written to Chancellor of the Exchequer Rachel Reeves, urging her to halt the Bank of England's proposed stablecoin holding limits.

📌 MPs' core concerns

Individual holding limit: £20,000

Corporate holding limit: £10,000,000

Stablecoins pegged to the pound must hold 40% of reserves as non-interest-bearing deposits in the central bank.

MPs believe:

This move will force capital to flow overseas

Undermine the government's strategy to make the UK a center for digital assets

Lead to policies that are "fragmented and highly restrictive," severely hindering Web3 innovation and adoption

The letter clearly states: the UK is currently "heading in the wrong direction."

📌 Industry response

Crypto firms generally criticize:

The central bank's proposal is too strict and will weaken the competitiveness and utility of stablecoins.

The UK's regulatory framework is becoming a key case in the global regulatory game of digital assets.