The Bank of England recently announced several major updates to the regulatory framework for sterling-backed stablecoin digital currencies. In many ways these updates were a capitulation to an industry that has warned of overly cautious and restrictive rules hurting the British stablecoins chances of being competitive. The key changes included
Oscar Hornstein
The Bank of England recently announced several major updates to the regulatory framework for sterling-backed stablecoin digital currencies.
In many ways these updates were a capitulation to an industry that has warned of overly cautious and restrictive rules hurting the British stablecoins chances of being competitive.
The key changes included the scrapping of the previously proposed £20,000 cap for held coins in favour of a £40bn issuance cap and allowing issuers to invest up to 70% of the pounds held to back the value of the digital coins in gilts instead of keeping them in interest-free central bank accounts.
It was a big moment for advocates of stablecoin technology, giving consumers the ability to own much larger quantities of the asset and issuers the ability to make a profit on the currency they issue….
