The Bank of England hints at possibly relaxing restrictions on stablecoin holdings.

PANews March 12 news, according to Bloomberg, Sarah Breeden, Deputy Governor of the Bank of England, hinted that regulators may soften their strict stance on stablecoin holding limits, after the proposal sparked strong opposition from the digital asset industry. Last November, the central bank proposed temporary holding limits for stablecoins deemed systemically important: £20,000 for individuals and £10 million for companies, to prevent risks from sudden transfers of customer deposits from banks to stablecoins. However, stablecoin issuers and the crypto industry warned that these limits are difficult to enforce and could stifle innovation.

Breeden stated during a House of Lords committee meeting that the central bank is "open to other ways" to achieve the goal of protecting the UK economy, and is reviewing feedback received on last November's consultation paper. She acknowledged technical difficulties in implementing the limits, including how to effectively track token holders and holdings in secondary market transactions, as well as the cost-effectiveness of building systems for temporary restrictions. The central bank plans to finalize the regulations by the end of the year.