Bank of England plans to limit stablecoin holdings, strongly opposed by cryptocurrency institutions

According to ChainCatcher, cryptocurrency institutions are calling on the Bank of England to abandon plans to limit stablecoin holdings, which will make the UK regulate this fast-growing market more stringent than the United States or the European Union. The Bank of England plans to impose holding restrictions on all systemic stablecoins: individual holding caps are between £10,000 and corporate holding caps are between £10,000. The central bank is concerned that the tokens may weaken the banking system by pulling away bank deposits. Tom Duff Gordon, vice president of international policy at Coinbase, said: "Setting a cap on stablecoins is not good for UK depositors, the City and the pound, and no other major jurisdictions believe it is necessary to implement the cap." Simon Jennings, executive director of the UK Crypto Assets Business Council, pointed out that stablecoin issuers cannot understand the identity of token holders in real time, and enforcing the cap requires expensive and complex new systems.