Bank of England Proposes Limits on Individual Stablecoin Ownership

The Bank of England is proposing limits to stablecoin ownership among individuals.

In a consultation paper issued Monday (Nov. 10), the central bank said individuals would be limited to holding 20,000 pounds (about $26,000) worth of what it called “systemically important” stablecoins, with most businesses limited to owning 10 million pounds.

There are some exemptions to the latter rule, including retail businesses like supermarkets and cryptocurrency trading platforms, the paper said.

“Today’s proposals mark a pivotal step towards implementing the U.K.’s stablecoin regime next year,” Bank of England Deputy Governor for Financial Stability Sarah Breeden said in a Monday press release. “Our objective remains to support innovation and build trust in this emerging form of money. We’ve listened carefully to feedback and amended our proposals for achieving this, including on how stablecoin issuers interact with the Bank of England. These proposals are fit for a future where stablecoins play a meaningful role in payments, giving the industry the clarity it needs to plan with confidence.”

Sablecoins “have the potential to make payments faster, cheaper and more efficient and could be used widely for payments,” the consultation paper said.

The paper came weeks after Bank of England Governor Andrew Bailey wrote an op-ed in which he seemed to relax his position on stablecoins.

Writing in the Financial Times last month, Bailey said it would be “wrong to be against stablecoins as a matter of principle,” while touting their potential for “driving innovation in payments systems both at home and across borders.”

While Bailey had given a speech in July contending that stablecoins are not a substitute for commercial bank money, his piece last month said the financial system “does not have to be organized” as it is now, with a heavy reliance on commercial bank lending to fuel the economy.

The bank’s new proposal is also happening as stablecoin payment volume is surging in the United States following the signing of the GENIUS Act.

Over $10 billion flowed through stablecoins in August for goods, services and transfers. The figure was more than double the volume of the same month in 2024.

“It’s well understood that stablecoins have graduated from merely being a tool used by crypto traders and exchanges to conveniently move money around without relying on banks, to a more widely used tool for consumer and enterprise payments,” PYMNTS reported Oct. 26.