Bank of England Plans Regulatory Framework for Stablecoins by 2026
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 1h ago- Regulatory Framework Planning: The Bank of England announced plans to finalize regulatory frameworks for systemic stablecoins, tokenized collateral, and a Digital Securities Sandbox by the end of 2026, aiming to lay the groundwork for comprehensive development of the UK's digital financial markets, thereby enhancing overall economic efficiency.
- Stablecoin Potential: Executive Director Mills highlighted that stablecoins have the potential to modernize retail and wholesale payments, enabling faster, cheaper, and more efficient transactions, providing valuable choices for individuals and businesses making payments in the UK, thus stimulating economic activity.
- Holding Limit Proposal: The BoE proposed capping individual stablecoin holdings at £10,000 to £20,000 and business holdings at £10 million, aiming to ensure market stability and mitigate potential risks, thereby enhancing market confidence.
- Need for International Consistency: Mills emphasized the necessity for a consistent international approach to ensure smoother movement of cross-border collateral, with the BoE planning to clarify how tokenized collateral can operate under the existing regulatory framework to bolster confidence among market participants.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
