curb the risk of destabilizing the commercial banking sector<\/a>, which most people rely on for mortgages. <\/p>\n“These proposed steps, whilst looking harsh at first glance, will benefit systemic stablecoins in the medium and long term to become a trustworthy method\u00a0of\u00a0value exchange and a true alternative to current forms\u00a0of\u00a0digital money,” Etay Katz, head of digital assets at law firm Ashurst, said in an emailed comment.<\/p>\n
Bank of England’s Stablecoin Backing Proposals<\/p>\n
The BOE also proposed stablecoin issuers being able to hold up to 60% of their backing assets in short-term U.K. government debt with the other 40% provided through unrenumerated Bank of England accounts. <\/p>\n
An exemption to this framework, however, is issuers of stablecoins transitioning to becoming systemic, who would be able to hold 95% of their backing assets in short-term debt to support their early growth.<\/p>\n
The central bank pointed out that its proposed framework only applies to “sterling-denominated systemic stablecoins” \u2014 digital tokens pegged to the U.K.’s currency that can be used for retail payments and wholesale settlement. Stablecoins used for non-systemic purposes, such as trading cryptoassets, would be regulated by the Financial Conduct Authority (FCA), the BOE said. <\/p>\n
The BOE’s proposals are now open for consultation until Feb.10 2026, after which it will finalize its rules, setting out detailed requirements for stablecoin issuers, later in 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"The Bank of England (BOE) has set out its proposed stablecoin regulatory regime, confirming plans to impose limits…\n","protected":false},"author":2,"featured_media":561543,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5008],"tags":[936,748,393,4884,34950,16,15],"class_list":{"0":"post-561542","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-england","8":"tag-bank-of-england","9":"tag-britain","10":"tag-england","11":"tag-great-britain","12":"tag-stablecoins","13":"tag-uk","14":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115525862428413530","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/561542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=561542"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/561542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/561543"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=561542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=561542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=561542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}