The Bank of England (BoE) has clarified that its proposed restrictions on stablecoin usage are not meant to be permanent. According to Deputy Governor Sarah Breeden, these measures are being introduced as a short-term step to ensure financial stability during the early adoption phase of digital currencies.
The plan to cap stablecoin holdings and transaction volumes was first introduced in a discussion paper back in November 2023. While the central bank emphasized the importance of managing systemic risks, several crypto industry groups voiced concerns in September 2025, claiming the proposal could slow innovation and make the UK less attractive for crypto businesses.
Speaking at DC Fintech Week, Breeden explained that the limits are intended as a temporary “bridge” to help the financial system adapt to stablecoins without disrupting existing credit channels.
“We plan to lift these limits once we’re confident that the shift to stablecoins no longer threatens financing to the real economy,” she said.
The restrictions, initially proposed to range between £10,000 and £20,000 ($13,400–$26,800), drew criticism from experts who argued such tight controls could discourage new projects and signal regulatory hostility toward crypto.
Consultation Coming Before Year-End
Breeden announced that the BoE will launch a public consultation before the end of the year to gather feedback on how these limits should be structured and eventually removed.
“We’ll soon consult on our proposed framework for sterling-denominated stablecoins used in systemic payment systems,” she said. “Our goal is to remain open to feedback as we finalize the rules.”
Among the options under consideration are higher limits for businesses and exemptions for large retailers such as supermarkets. The BoE is also exploring special treatment for companies operating within the UK’s Digital Sandbox, launched in October 2024, which allows businesses to test blockchain-based innovations under supervision.
