Bank of England Eases Stablecoin Rules with £40 Billion Limit

AI Summary

The Bank of England (BoE) has revised its proposed stablecoin regulations, removing plans to cap individual holdings and instead limiting total issuance to £40 billion ($52.8 billion). The new rules will allow issuers to allocate up to 70% of backing assets into short-term government debt, an increase from the previous 60%. Despite these changes, industry representatives express concerns that the amendments do not sufficiently position sterling stablecoins to compete internationally. The BoE is currently finalizing guidelines for stablecoins intended for retail payments, with a feedback period ending September 22.