BoE stablecoin rulings dey reconsider as limits an reserves dey face pushback from industry

Bank of England (BoE) dey rethink some parts of im proposed stablecoin rule after industry people warn say the policy fit make UK lose ground for digital finance. Deputy Governor Sarah Breeden talk say officials dey review earlier proposals, including one temporary holding cap of up to £20,000 per person for one stablecoin. BoE still dey reconsider reserve requirements — e dey reported say dem propose say at least 40% of stablecoin reserves go siddon for central bank without earning interest, and the rest make dem invest for short-term UK government debt. For traders, the main change na the economics. Reserve structures fit cause “yield drag” for issuers: more idle, non-interest-bearing reserves fit reduce issuer incentives and weak the supply of UK stablecoins. Industry people also argue say holding limits fit push activity go other jurisdictions. Overall, the discussion dey move towards a more workable balance wey focus on liquidity and redemption between stability safeguards and innovation. But final parameters and timelines still unclear, so near-term policy sentiment dey volatile for UK-linked stablecoins.