BoE official: Easing stablecoin rules risks financial stability

Bank of England Deputy Governor Sarah Breeden told Reuters that easing the UK's stablecoin regulations could undermine financial stability and potentially trigger a credit crisis. She stated that the introduction of new forms of money presents new types of risks that need to be managed. Breeden also noted that setting holding limits for individuals and corporations helps reduce the pressure on banks during a bank run. The Bank of England previously announced it would cap stablecoin holdings at £10,000 (around $12,700) for individual investors and £10 million (around $12.7 million) for businesses.