{"id":51671,"date":"2025-10-08T10:01:41","date_gmt":"2025-10-08T10:01:41","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=51671"},"modified":"2025-10-08T10:01:41","modified_gmt":"2025-10-08T10:01:41","slug":"bank-of-england-eyes-exemptions-to-controversial-stablecoin-cap-proposal-details","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=51671","title":{"rendered":"Bank Of England Eyes Exemptions To Controversial Stablecoin Cap Proposal \u2013 Details"},"content":{"rendered":"
\n

The Bank of England (BOE) is reportedly softening its stance toward digital assets with a potential exemption to a controversial policy that would establish stricter stablecoin rules for the UK market.<\/p>\n

BOE Plans Stablecoin Cap Exemption<\/h2>\n

On Tuesday, Bloomberg reported<\/a> that the Bank of England is planning to grant exemptions to businesses in the UK from its proposed limit on stablecoin ownership, according to people familiar with the matter.<\/p>\n

The central bank aims to grant waivers to certain digital asset firms that need to hold large amounts of stablecoins, like crypto exchanges. Additionally, the BOE intends to allow firms to use stablecoins as a settlement asset in its experimental Digital Securities Sandbox.<\/p>\n

The changes to the sandbox will initially permit firms to adopt regulated stablecoins tied to non-sterling currencies for settlement purposes. This would allow the BOE to observe use cases for these digital assets while it evaluates its approach in more detail, said Bloomberg sources.<\/p>\n

As reported<\/a> by Bitcoinist, the central bank is exploring the restriction of stablecoin ownership in the country, imposing a limit of \u00a310,000 to \u00a320,000 for individuals and \u00a310 million for businesses on all systemic stablecoins.<\/p>\n

Notably, the BOE\u2019s plan would reassemble its proposed approach to the digital pound, which aimed to address financial stability risks that deposits could flow out of the banking system.<\/p>\n

BOE executive director for financial market infrastructure, Sasha Mills, previously stated that the limits would \u201cmitigate financial stability risks stemming from large and rapid outflows of deposits from the banking sector (\u2026) and risks posed by newly recognised systemic payment systems as they are scaling up.\u201d<\/p>\n

Some crypto industry and payment groups heavily criticized the central bank\u2019s plan, arguing that it would be detrimental to the pound and put the UK at a disadvantage against the US and the European Union<\/a> (EU).<\/p>\n

Simon Jennings, executive director of the UK Cryptoasset Business Council trade body, considers that \u201climits simply don\u2019t work in practice.\u201d He explained that \u201cstablecoin issuers don\u2019t have sight of who holds their tokens at any given time, so enforcing caps would require a costly, complex new system, such as digital IDs or constant co-ordination between wallets.\u201d<\/p>\n

A Softer Crypto Stance?<\/h2>\n

According to Bloomberg\u2019s sources, the restrictions are expected to be included in a consultation paper that will be published by the end of the year. The BoE previously said its proposed cap could be \u201ctransitional\u201d while the financial system adjusts to the growth of digital money.<\/p>\n

The report also noted that the potential exemptions could be seen as a shift from Governor\u00a0Andrew Bailey\u2019s skeptical perspective. Bailey has previously warned that stablecoins threaten to destabilize the public\u2019s trust in money.<\/p>\n

In August, former Chancellor and member of Coinbase\u2019s advisory council, George Osborne,\u00a0criticized<\/a> the Bailey and the government\u2019s approach to the crypto industry, arguing that it risks being \u201cleft behind\u201d during the second wave of digital assets if it doesn\u2019t \u201ccatch up.\u201d<\/p>\n

Osborne stated that authorities cannot continue to wait and evaluate the development of a digital revolution \u201creminiscent of Nigel Lawson\u2019s Big Bang in the 1980s\u201d while other financial capitals adopt comprehensive legislative frameworks for crypto asset platforms.<\/p>\n

Nonetheless, the BOE Governor has recently<\/a> shared a softer approach, affirming that it would be \u201cwrong to be against stablecoins as a matter of principle\u201d and noting that they have the potential to drive \u201cinnovation in payments systems both at home and across borders.\u201d<\/p>\n

\"stablecoin,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Bank of England (BOE) is reportedly softening its stance toward digital assets with a potential exemption to a controversial policy that would establish stricter stablecoin rules for the UK market. BOE Plans Stablecoin Cap Exemption On Tuesday, Bloomberg reported that the Bank of England is planning to grant exemptions to businesses in the UK […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-51671","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/51671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51671"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/51671\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}