Plans by the Bank of England to soften proposed restrictions on stablecoins have been welcomed by industry leaders.

Stablecoins are a type of cryptocurrency designed to maintain a stable value, usually by being pegged to another asset such as the US dollar, gold or government bonds.

Unlike cryptocurrencies such as Bitcoin or Ethereum, which can swing wildly in price, stablecoins aim to remain close to a fixed value.

The Bank of England has confirmed it is looking to water down two of the more contentious elements of its proposed stablecoin framework – the holding caps and the 40 per cent non-interest-bearing reserve requirement –  following significant industry pushback.

Mark Fairless (pictured), group CEO of…