Yes

>>The Bank of England appears to be indicating a possible relaxation of certain aspects of its stablecoin proposal.

The Bank of England appears to be indicating a possible relaxation of certain aspects of its stablecoin proposal.

crypthub

about 2 hours ago

Regulatory Framework Evolution

The Bank of England signaled possible easing of its stablecoin rules after harsh feedback from crypto firms and legal experts. Critics argue the draft could make sterling‑backed stablecoins unattractive and push innovation abroad. The BoE maintains the framework aims to protect financial stability and consumer trust while the UK risks lagging the US and EU. Deputy Governor Sarah Breeden said the central bank remains open to revising proposals based on industry input.

Reserve Requirements and Profitability

Issuers would currently hold 60 % of reserves in short‑term UK government debt and 40 % as non‑interest‑bearing deposits at the BoE, with caps of £20,000 for individuals and £10 million for businesses. The 40 % non‑yielding portion threatens profit margins, unlike US stablecoins that earn interest on Treasury holdings. The BoE argues this structure reduces run risk and builds trust, but is reviewing “overly conservative” measures and alternative mechanisms.

Wallet Restrictions and Wider Context

A proposed ban on unhosted wallets drew sharp criticism for being unenforceable and stifling innovation. Meanwhile, the digital pound project remains undecided, with further testing planned before a 2026 decision. Global regulators in the EU and US are moving faster, putting pressure on the UK to balance innovation with stability.