{"id":72525,"date":"2026-05-14T21:57:02","date_gmt":"2026-05-14T21:57:02","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/boe-deputy-governor-breeden-signals-retreat-on-uk-stablecoin-ownership-limits\/"},"modified":"2026-05-14T21:57:02","modified_gmt":"2026-05-14T21:57:02","slug":"boe-deputy-governor-breeden-signals-retreat-on-uk-stablecoin-ownership-limits","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/boe-deputy-governor-breeden-signals-retreat-on-uk-stablecoin-ownership-limits\/","title":{"rendered":"BoE Deputy Governor Breeden Signals Retreat on UK Stablecoin Ownership Limits"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Bank of England Deputy Governor Sarah Breeden told the Financial Times (FT) its stablecoin ownership limits may have been \u201coverly conservative.\u201d<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The BoE plans to lower its 40% central bank deposit requirement, which is stricter than U.S. rules, hurting UK stablecoin profitability.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Breeden signaled the BoE sees no urgency to raise rates in June or July 2026, despite markets pricing in 2 to 3 hikes this year.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Bank of England Revisits <span>Stablecoin<\/span> Limits That Industry Called \u2018Cumbersome\u2019<\/h2>\n<p>Deputy Governor Sarah Breeden, who oversees financial stability at the UK central bank, <a href=\"https:\/\/www.ft.com\/content\/8a17d769-4e8a-4655-8aec-a683e7147322?syn-25a6b1a6=1\" target=\"_blank\" rel=\"noopener noreferrer\">told<\/a> the Financial Times (FT) the BoE is \u201clooking very hard at whether there are different ways we can manage what we think is an important risk as <span>stablecoins<\/span> come into play.\u201d FT journalists Martin Arnold and Sam Fleming reported on the matter.<\/p>\n<p><a href=\"https:\/\/news.bitcoin.com\/90-of-perus-28-billion-crypto-market-is-now-driven-by-stablecoins\/\">Stablecoins<\/a> are digital tokens pegged one-to-one to a fiat currency such as the U.S. dollar. The BoE had proposed capping individual ownership of UK sterling-based <span>stablecoins<\/span> at 20,000 pounds per coin, with businesses limited to 10 million pounds, as a guardrail against large deposit outflows from banks.<\/p>\n<p>The report notes that industry groups called those limits operationally \u201ccumbersome.\u201d Breeden acknowledged the criticism directly. \u201cWe are genuinely open to thinking whether there are other ways of achieving our objective,\u201d she told the FT.<\/p>\n<p>The BoE is also reconsidering a separate rule requiring at least 40% of assets backing a UK <span>stablecoin<\/span> to sit on deposit at the central bank, earning no interest. The remainder would be held in sovereign bonds and other liquid assets. The FT editorial noted that the requirement is far stricter than rules in the United States, making UK-based <span>stablecoins<\/span> less profitable to operate.<\/p>\n<p>Breeden said the 40% figure came from studying the pace of withdrawals during the 2023 Silicon Valley Bank collapse and other recent stress events. \u201cIt was based on experience of potential <span>liquidity<\/span> stress,\u201d she explained. \u201cBut we will look hard to see if we have been overly conservative in our thinking there.\u201d<\/p>\n<p>Sterling-based <a href=\"https:\/\/news.bitcoin.com\/stablecoins-reach-321b-market-cap-as-1b-inflows-lift-sector-to-new-high\/\">stablecoins<\/a> currently account for less than 0.5% of a global <span>stablecoin<\/span> market worth over $320 billion, according to the FT report\u2019s stats. <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">Crypto<\/a> companies have warned that the UK risks losing ground in the race to build a competitive digital assets sector.<\/p>\n<p>Breeden disclosed to the FT reporters that the central bank wants UK <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a> to work. \u201cWe are keen to create a regime where <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a> can succeed and can deliver benefits to the users,\u201d she said. \u201cBut it is money, and we want to make sure that this new form of money is safe.\u201d<\/p>\n<p>On separate monetary policy questions, Breeden pushed back against any expectation of near-term rate moves. Markets are currently pricing in two or three UK interest rate increases in 2026, with the first expected as early as summer. Breeden told the FT that timeline is not binding.<\/p>\n<p>\u201cWe\u2019ve got time to understand firstly the size of the shocks and secondly, how the economy is evolving,\u201d she said. \u201cYou\u2019re obviously correct that we can\u2019t wait forever, but we don\u2019t need to do it in June or July.\u201d<\/p>\n<p>Breeden also noted in the interview that she sees limited risk that the conflict in the <a href=\"https:\/\/news.bitcoin.com\/tucker-carlson-calls-markets-fake-after-60-days-of-middle-east-conflict\/\">Middle East<\/a> will produce the kind of sustained wage and price spiral seen after Russia\u2019s invasion of Ukraine in 2022. She cited a softer labor market and restrictive monetary policy as factors reducing that risk.<\/p>\n<p>The BoE has faced pressure over its ongoing balance sheet reduction, which involves unwinding a 525 billion pound bond portfolio. The FT report noted the central bank estimated last year that the process adds 0.15 to 0.25 percentage points to long-term interest rates, a figure Breeden described as \u201cnot enormous.\u201d<\/p>\n<p>The revised <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoin<\/a> framework has no finalized timeline, but Breeden\u2019s comments to the Financial Times signal the BoE is prepared to move away from its original approach before any rules take effect.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/report-boe-deputy-governor-breeden-signals-retreat-on-uk-stablecoin-ownership-limits\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Bank of England Deputy Governor Sarah Breeden told the Financial Times (FT) its stablecoin ownership limits may have been \u201coverly conservative.\u201d The BoE plans to lower its 40% central bank deposit requirement, which is stricter than U.S. rules, hurting UK stablecoin profitability. Breeden signaled the BoE [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":72526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72525"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72525"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72526"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}