The Bank of England has hinted at a possible easing of restrictions on stablecoin holdings.

PANews reported on March 12th, citing Bloomberg, that Bank of England Deputy Governor Sarah Breeden hinted that regulators might soften their strict stance on capping stablecoin holdings, a proposal that had drawn strong opposition from the digital asset industry. Last November, the central bank proposed a temporary cap of £20,000 for individuals and £10 million for businesses holding stablecoins deemed systemically important, to prevent risks arising from sudden transfers of customer deposits from banks to stablecoins. However, stablecoin issuers and the crypto industry warned that these caps would be difficult to enforce and could stifle innovation.

Speaking before a House of Lords committee, Breeden said the Bank of England was "open to other ways" to achieve its goal of protecting the UK economy and was reviewing feedback received on its consultation paper last November. She acknowledged technical difficulties in implementing a cap, including how to effectively track token holders and holdings in secondary market transactions, and the cost-effectiveness of building a system for temporary restrictions. The Bank of England plans to finalize the regulations by the end of the year.