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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