The Bank of England is facing increasing opposition to the proposal to limit the holding of British pound stablecoins to £20,000 for individuals and £10 million for businesses. The proposal was introduced in the November 2025 consultation document to prevent capital flight and protect financial stability as digital assets develop.
Regulators are concerned that large-scale implementation could disrupt lending activities, as banks provide about 85% of consumer credit in the UK. The plan also requires issuers to hold 40% of reserves in non-interest-bearing accounts, which could impact revenue. The crypto industry argues that these limits are unrealistic, could hinder payments, impede growth, and drive businesses overseas, while also being difficult to enforce with decentralized wallets.
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