England’s central bank is easing its stablecoin restrictions following pushback from the cryptocurrency industry.
The Bank of England (BOE) announced Monday (June 22) that it would not introduce the temporary holding limits on stablecoins it had been considering. Instead, the bank will apply a “temporary issuance guardrail” to “each systemic stablecoin,” initially set at 40 billion pounds.
“This is a major milestone in delivering greater choice and innovation in UK payments. Innovation thrives on trust,” Sarah Breeden, the bank’s deputy governor for financial stability, said in a news release.
“And today we’ve set out the foundations of that trust for a new form of money – with prompt redemption, strong protections and central bank support. This is truly a world leading regime.”
In addition to the 40 billion pound limit, the BOE has increased the maximum share of stablecoins allowed to be held in interest‑bearing assets from 60% to 70%, with the rest in central bank deposits.
“These deposits enable issuers to meet redemptions promptly. The change supports more viable business models while still allowing issuers to deal with outflows,” the BOE said.
The bank had proposed temporary ownership limits on U.K. stablecoins of 20,000 pounds per coin for individuals and 10 million pounds for businesses, to prevent a major outflow of deposits from banks.
However, Breeden told the Financial Times last month that the regulator was considering alternatives to this plan.
“What we have heard from industry is that the way we have proposed to implement limits is cumbersome operationally for a temporary measure,” she said. “So we are genuinely open to thinking whether there are other ways of achieving our objective.”
The new rules come at a time when stablecoins appear to be “finding their lane with chief financial officers,” as PYMNTS wrote last week.
However, this shift doesn’t mean CFOs view stablecoins as a “financial revolution, but as a controlled way to move money through more familiar banking channels.”
“Waiting for Certainty: Why Most CFOs Are Holding Back on Crypto and Stablecoins,” a recent installment of PYMNTS Intelligence’s 2026 Certainty Project, shows that most middle market companies remain cautious about digital assets. Usage is limited, with 13% of firms using stablecoins and 5% employing other cryptocurrencies.
“Yet the data also shows that finance leaders are not rejecting all digital assets equally,” PYMNTS wrote. “Stablecoins appear to have a more practical path forward because they are tied to traditional currency and may fit more easily into payment and treasury workflows.”
