{"id":876258,"date":"2025-10-08T22:18:45","date_gmt":"2025-10-09T03:18:45","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/10\/08\/boe-plans-exemptions-on-stablecoin-holding-limits\/"},"modified":"2025-10-08T22:18:45","modified_gmt":"2025-10-09T03:18:45","slug":"boe-plans-exemptions-on-stablecoin-holding-limits","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/10\/08\/boe-plans-exemptions-on-stablecoin-holding-limits\/","title":{"rendered":"BoE Plans Exemptions on Stablecoin Holding Limits"},"content":{"rendered":"
\n

\"BoE<\/a><\/p>\n

According to Bloomberg<\/a>, the Bank of England (BoE) is softening its stance on stablecoin holdings. The UK central bank now plans to grant exemptions to some of the limits it proposed for businesses.<\/strong><\/h4>\n

Governor Andrew Bailey long warned that a stablecoin could hurt our trust in money. Now, the BoE may let some firms hold more than the usual limits.<\/p>\n

Why the BoE Is Changing Its Approach<\/strong><\/h5>\n

The BoE<\/a> will allow firms to use stablecoins as a settlement asset in its Digital Securities Sandbox. It is a pilot project of blockchain-based trading and digital securities. By enabling firms to test stablecoins, the BoE can study their real-world applications.<\/p>\n

\n

\ud83c\udff4\udb40\udc67\udb40\udc62\udb40\udc65\udb40\udc6e\udb40\udc67\udb40\udc7f LATEST: Bank of England may relax proposed stablecoin caps on corporate holdings after industry pushback, signaling flexibility on exemptions for certain firms, per Bloomberg. pic.twitter.com\/XuuNPlEwAE<\/a><\/p>\n

\u2014 Cointelegraph (@Cointelegraph) October 8, 2025<\/a><\/p>\n<\/blockquote>\n

Industry experts have been urging the BoE to adopt more flexibility. Many fear that strict caps could make the UK less competitive compared to the US. The Trump administration passed the Genius Act<\/a> to regulate dollar-backed stablecoins. Without similar clarity, talent, investment, and liquidity may move from London to New York.<\/p>\n

How Big Is the Stablecoin Market?<\/strong><\/h3>\n

Stablecoins tie their value to traditional currencies, such as the US dollar. Safe, liquid assets, such as US Treasuries<\/a>, support them in a one-to-one ratio. In the last couple of years, they have become the subject of interest between banks and fintech companies. Stablecoins are faster and cheaper to use for payments compared to the traditional system. By 2030, they could handle over $50 trillion in payments annually.<\/p>\n

\n

The Bank of England plans to grant exemptions to proposed limits on stablecoin holdings by businesses, indicating a softening stance toward cryptoassets amid growing competition from the US https:\/\/t.co\/rCaBh2rYA4<\/a><\/p>\n

\u2014 Bloomberg (@business) October 7, 2025<\/a><\/p>\n<\/blockquote>\n

Despite the hype, the UK\u2019s market is small. Of the $303 billion in global stablecoins, only $581,000 peg their value to the British pound, and $468 million are backed by the Euro. It suggests that the UK risks falling behind if it doesn\u2019t embrace stablecoins.<\/p>\n

Balancing Innovation and Safety<\/strong><\/h3>\n

Bailey has begun to give suggestions more gently. He admits that stablecoins do not have to replace traditional finance, but will be able to innovate. The BoE will now allow certain stablecoins to support large-scale retail payments. Part of their reserves can be in safe assets, such as short-term government bonds or these stablecoins.<\/p>\n

UK-based banks have also been experimenting with tokenized deposits<\/a>. Professionals caution that although these controls slow down fraud and quicken payments, they can decrease the demand for government bonds.<\/p>\n

\n

According to Bloomberg, the Bank of England plans to exempt proposed limits on corporate stablecoin holdings. Insiders revealed that the draft suggests a holding limit of \u00a310,000\u2013\u00a320,000 for individuals and up to \u00a310 million for businesses, with possible exemptions for crypto\u2026<\/p>\n

\u2014 Wu Blockchain (@WuBlockchain) October 8, 2025<\/a><\/p>\n<\/blockquote>\n

Conclusion<\/strong><\/h3>\n

The new exemptions introduced by the BoE represent a shift in its attitude toward stablecoins. The central bank now sees the potential of stablecoins, shifting from skepticism to cautious openness. When applied correctly, these reforms can make the UK a more competitive player in the global market. As a business or investor, it is good news that stablecoins are finally gaining traction in the UK economy.<\/p>\n

<\/p>\n

\n

\"YouTube<\/p>\n<\/div>\n

Disclaimer<\/h6>\n

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer\/reviewers, and their risk tolerance may be different from yours.<\/p>\n

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.<\/p>\n

Copyright Altcoin Buzz Pte Ltd.<\/p>\n<\/p><\/div>\n

Read More<\/a>
\n Dion Guillemette<\/p>\n","protected":false},"excerpt":{"rendered":"

According to Bloomberg, the Bank of England (BoE) is softening its stance on stablecoin holdings. The UK central bank now plans to grant exemptions to some of the limits it proposed for businesses. Governor Andrew Bailey long warned that a stablecoin could hurt our trust in money. Now, the BoE may let some firms hold<\/p>\n","protected":false},"author":1,"featured_media":876259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26931,974],"tags":[],"class_list":{"0":"post-876258","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-exemptions","8":"category-plans"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/876258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=876258"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/876258\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/876259"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=876258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=876258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=876258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}