neutral
Recently
Bank of England proposes new regime for sterling‑denominated stablecoins with backing cap at 60%
UK’s Bank of England proposes stable‑coin regulation allowing 60% government‑debt backing, reflecting softer stance.
The Bank of England unveiled draft rules for stable‑coin issuers in the UK, allowing them to invest up to 60% of backing assets in short‑term UK government debt. Previously the regulator had proposed 100% non‑interest‑bearing reserves. The control remains on individual holdings (capped at £20,000 for retail) under the proposed regime, set for wider consultation. The move softens the stance compared to earlier drafts and signals a push to balance innovation and financial‑stability risk amid growing crypto‑payments interest in the UK.