Britain gears up new Bank of England objective for stablecoins
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Britain plans to give the Bank of England a new statutory objective to support innovation in stablecoins and other forms of digital money, while keeping financial stability as its primary responsibility.
Key facts
Retail investor-sized stablecoin transactions below $250 have risen from $500 million in 2019 to nearly $70 billion last year, according to Visa data that points to growing consumer use
The stablecoin market is valued at around $303 billion as of this writing, up from around $200 billion at the beginning of last year, according to DeFiLlama data
The Bank in June dropped proposed temporary limits on how many stablecoins individuals and businesses could hold, replacing them with a temporary 40 billion pound ($54 billion) issuance cap for each
The government plans to add the secondary objective through an amendment to the Financial Services and Markets Bill
Summary
Britain plans to give the Bank of England a secondary objective supporting innovation in stablecoins, digital money and payments. Financial stability would remain its primary duty, with annual reports to Parliament on the new objective being planned. The move comes as Britain prepares stablecoin rules, including a temporary £40 billion cap for each systemic token. The government plans to add the secondary objective through an amendment to the Financial Services and Markets Bill.