Breeden Outlines BoE’s Phased Approach: Temporary Stablecoin Limits Pave Way for Full Integration
Bank of England Deputy Governor Sarah Breeden has detailed the central bank’s strategic approach to stablecoin regulation, framing proposed limits as a temporary phase in a broader integration plan.
In a speech at DC Fintech Week, Breeden clarified that restrictions on holdings and transaction size are a transitional tool, not a permanent policy.
“The measures will allow the structure of real-economy financing to adjust,” Breeden stated, enabling the BoE to monitor adoption and prevent disruptive shifts.
She was unequivocal about the end goal: “We would expect to remove the limits once we see that the transition no longer threatens the provision of finance to the real economy.” This follows significant pushback from the sector, which viewed the initially proposed caps as a major barrier to innovation in the UK.
