Bank of England's Stablecoin Cap Proposal Faces Criticism

The Bank of England's proposal to impose a cap on systemic sterling stablecoin holdings has sparked criticism from both industry stakeholders and political figures. According to NS3.AI, the proposed limits of £20,000 per individual and £10 million per business have been met with backlash. Critics argue that these restrictions, along with a rule requiring 40% of reserves to be held in non-interest-bearing accounts at the Bank of England, could negatively impact payment systems, the economic viability of issuers, and the UK's competitive position in the global market.