Pushback is mounting against the Bank of England’s proposal to restrict stablecoin holdings for UK individuals and businesses.
On Thursday, the central bank’s plan, which would limit individual stablecoin holdings to between £10,000 and £20,000, and business to $10 million, received fresh criticism in the House of Lords.
“Does this not send a terrible signal to people who want to base their crypto businesses in the UK?” Lord Ed Vaizey, co-chair of the UK Parliament’s Crypto and Digital Assets All Party Parliamentary Group, asked in a Thursday debate.
Vaizey called on the bank to publish their modelling that justifies the restrictions.
“Transparency matters — especially when the stakes are this high,” he said in a follow up post on social media.
The Bank of England first proposed limiting the amount of stablecoins individuals can hold in November 2023. At the time, it cited concerns that crypto tokens pegged to currencies like the pound could weaken the banking system by draining it of deposits.