The Bank of England is hitting the pause button, not the stop button, on stablecoins. Deputy Governor Sarah Breeden has confirmed that planned limits on stablecoin use are a temporary measure to ensure financial stability during a transitional period.
Addressing concerns from the crypto industry that strict caps would drive business away, Breeden assured that the restrictions will be lifted.
The bank’s ultimate aim is to “support a role for stablecoins,” and the limits are merely a stopgap to monitor the market’s adjustment. “Let me be clear,” Breeden said, “We would expect to remove the limits” once the risk to the economy subsides.
