Bank of England considers easing strict stablecoin holding limits, says report

The Bank of England is considering easing its previously proposed strict limits on stablecoin holdings for individuals and corporations, Bloomberg reported, citing multiple sources. The central bank is reportedly weighing the complete removal of holding caps for businesses. This exemption would likely apply to companies, such as cryptocurrency exchanges, that require large stablecoin reserves for their operations. Additionally, the Bank of England is looking into supporting companies as they test stablecoin-based payment services within a securities sandbox, according to the report. The central bank declined to comment on the matter. This potential policy shift follows an earlier report from the Financial Times stating that the bank's initial plan to impose strict holding limits had drawn backlash from the industry.