Financial Times: Cryptocurrency Industry Opposes Bank of England's Proposed Stablecoin Holding Cap Plan

BlockBeats News, on September 15, the cryptocurrency industry is calling on the Bank of England to abandon plans to limit the number of stablecoins held by individuals, which will allow the UK to impose stricter regulation on the rapidly developing stablecoin market than the United States or the European Union. Bank of England officials have previously said it plans to advance a proposal for holding caps for all systemic stablecoins—the caps for individuals at £10,000 to £20,000 and the caps for businesses at £10 million. The plan reflects Bank of England’s concerns that such digital currencies may weaken financial stability by sucking away deposits in the banking system, and also highlights that the UK is more cautious in cryptocurrency regulation than other countries and regions. The plan has sparked criticism from the cryptocurrency and payments industries. Representatives of the crypto industry pointed out that this will put the UK at a competitive disadvantage compared to other countries and regions, and the regulation is difficult and costly.