Bank of England Proposes £20,000 Limit on Stablecoin Holdings
The Bank of England has unveiled a regulatory framework for systemic stablecoins, imposing temporary holding limits of £20,000 for individuals and £10 million for most businesses. The MOVE aims to mitigate risks of large-scale deposit outflows as digital currency adoption grows.
Systemic stablecoin issuers will be required to maintain 60% of reserves in UK government debt and 40% at the central bank, ensuring redemption capacity during market stress. The dual regulatory approach keeps non-systemic stablecoins under FCA oversight while transferring systemically important ones to BoE supervision.
These measures, part of broader payments system modernization, seek to integrate digital money safely alongside traditional cash and bank accounts. Market participants have until February 2026 to provide feedback before final implementation.
