Bank of England Proposes £20,000 Cap on Stablecoin Holdings Under New Regulatory Framework
The Bank of England has introduced a new proposal outlining stricter regulations for stablecoins used in payments. Including a temporary cap of £20,000 per person and £10 million per business.
The move aims to ensure financial stability as the UK transitions toward broader adoption of digital currencies. Under the proposed rules, stablecoin issuers must hold at least 40 percent of their reserves with the central bank. While the remaining portion can be invested in short-term UK government securities. Officials say the limits are designed to mitigate liquidity and systemic risks during the early stages of stablecoin integration into the financial system.
The proposal represents a key milestone in the UK’s digital asset strategy, signaling a balance between fostering innovation and protecting consumers. The Bank of England plans to review feedback from the consultation process before finalizing the framework in 2026. Setting the stage for a regulated and secure stablecoin economy.
Clever Robot News Desk 12th November 2025
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