The plans indicate that individuals will be limited to owning up to £20,000 in UK stablecoins that are considered systemically important. The Bank of England has been assessing the potential opportunities and risks linked to digital currencies over the past year. It said its proposed limits would include allowing stablecoin issuers to have as much as 60% of the backing assets in short-term government debt. The Bank said it is also considering central bank liquidity arrangements to “support systemic stablecoin issuers in times of stress”. “We’ve listened carefully to feedback and amended our proposals for achieving this, including on how stablecoin issuers interact with the Bank of England.
