Bank of England Softens ‘Overly Conservative’ Stablecoin Plans Amid Industry Pressure
The post Bank of England Softens ‘Overly Conservative’ Stablecoin Plans Amid Industry Pressure appeared on BitcoinEthereumNews.com. In brief The Bank of England is reportedly reconsidering parts of its stablecoin plan. A 40% reserve floor could cost issuers £11.2 million per £1 billion in circulation. Observers say the bank’s shift could point to a move toward a more workable regime. The Bank of England is reconsidering key parts of its proposed stablecoin rules, softening its push after industry pushback over planned limits on holdings and reserve requirements. Sarah Breeden, the Bank of England’s deputy governor for financial stability, told the Financial Times on Thursday that officials were weighing other approaches to containing stablecoin-related risks as the sector grows. “It was based on experience of potential liquidity stress,” Breeden said. “But we will look hard to see if we have been overly conservative in our thinking there.” Breeden noted the reserve proposal was based o