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\n\t\t\t\t\t\t\t\t\tSystemic stablecoin issuers will now have clearer rules for scaling within the UK\u2019s digital money framework.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The Bank of England has abandoned previous proposed rules on stablecoins in its final policy and draft rules.<\/p>\n
The latest revisions were made in response to widespread concern that the rules would stand in the way of the market\u2019s growth and development.<\/p>\n
The central bank revealed<\/a> on Monday that it has scrapped its plans to cap individual holdings, instead choosing to limit total issuance per stablecoin, which was initially set at $52.8 billion.<\/p>\n \u201cThis is a major milestone in delivering greater choice and innovation in UK payments,\u201d said Deputy Governor for Financial Stability Sarah Breeden.<\/p>\n<\/blockquote>\n Per the bank, the new guardrail will allow systemic stablecoin firms to run viable operations and \u201csupport daily volumes and transactions\u201d as compared to other systems.<\/p>\n Additionally, the BOE has reduced its requirements on backing assets, increasing the figure to 70% from 60%, which is the share of backing assets that can be held in short-term government debt. Meanwhile, the rest must now be held in central bank deposits that don\u2019t bear any interest.<\/p>\n Breeden believes that innovation depends on trust and that the new guidelines will build confidence in stablecoins by ensuring quick redemptions, strong consumer protections, and Central Bank backing.<\/p>\n The BOE has also warned that while stablecoins can make payments faster and cheaper for cross-border transactions, their growing adoption could reduce bank deposits and potentially affect lending and borrowing costs.<\/p>\n Stablecoins are here to stay, though, with most crypto executives viewing them as tools to unlock working capital and enhance treasury operations. A recent survey conducted by Ripple found<\/a> that 72% of institutions believe that offering these digital assets is key to remaining competitive in the market.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n\n
The BOE Still Has Reservations<\/h2>\n
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