What the Bank of England’s stablecoin cap means for UK crypto users
The Bank of England (BoE) has unveiled plans that could reshape how UK cryptocurrency users hold and use stablecoins.
The proposal introduces a temporary £20,000 cap on individual holdings of “systemic stablecoins” – digital tokens designed to maintain a stable value and are usually pegged to a national currency such as the dollar or the pound.
The proposal, part of a wider consultation running until 10 February 2026, is intended to manage potential risks as stablecoins become part of the mainstream financial system.
According to the BoE, the cap would be a temporary safeguard while regulators assess the impact of digital money on banks, credit provision, and financial stability.
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