The Bank of England is preparing regulation of stablecoins to ensure the stability of the financial system

The Bank of England (BOE) is planning to unveil a new regulatory framework for stablecoins, which will be an important step in response to the development of the US market. The main focus will be on "systemic" stablecoins, which can have a significant impact on payment systems. The application of temporary restrictions on holding volumes and a two-tiered regulatory system is intended to protect banks from possible financial crises caused by a rapid outflow of deposits.

Source Yahoo Finance 

The restrictions will be applied to maximum amounts of £20,000 for individuals and £10 million for businesses. Deputy Governor Sarah Breedan emphasized that these distinctions stem from the UK's reliance on the banking system in real estate, which could become vulnerable to such fluctuations. Along with the new regulations, the UK government plans to appoint a "digital markets champion" responsible for modernizing blockchain technologies in the financial sector.

This step reflects the UK's desire to become a leading jurisdiction for responsible innovation in the cryptocurrency sector. New initiatives for the transition to digital financial instruments are also planned to be introduced in the near future, which will undoubtedly confirm the high level of regulatory transparency in the market.