The Bank of England wants to limit how many stablecoin tokens a person or business can hold with its new proposal.
For individuals, the cap is between £10,000 and £20,000; for businesses, £10 million, according to a Financial Times report on Sept. 15.
The main reason, as the central bank says, is that the watchdog is worried stablecoins could cause bank deposit outflows. It simply means that if many people shift money from banks into stablecoins, banks might lose money and not lend enough.
If the BoE’s proposal gets the green light, people might not be able to hold larger amounts of stablecoins, which changes how people use them.
While it might help banks keep their authority and prevent mass outflows, the regulation will potentially hinder innovation and block mainstream crypto adoption.
The overall impact on the industry could be significant since the UK is the 11th top country on the 2025 Global Crypto Adoption Index by Chainalysis.
“Imposing caps on stablecoins
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