UK's Bank of England: Stablecoins Under Scrutiny

The Bank of England has shared its updated plans for managing stablecoins, a type of digital currency tied to stable assets like the British pound. This isn't the first time they've talked about this, but their latest ideas have sparked some debate. The bank has been gathering thoughts from various groups, including banks, tech experts, and even individuals. They've made some changes since their first draft, but some people still think the rules are too strict. One big concern is the limit on how much stablecoin people can hold. The bank suggests a cap of 20, 000 pounds for individuals and 10 million pounds for businesses. This is higher than before, but some argue it's still too low and questions who gave the bank the authority to set these limits. Not everyone agrees with the bank's cautious approach. Some believe the bank is being overly careful, especially when it comes to stablecoins used for everyday payments. Others think the bank's worries about financial stability are valid, as stablecoins could affect how banks lend money. The bank's plan also includes some new ideas, like direct access to the bank's funds and the ability to use reserves for liquidity. These could make the stablecoin market more competitive, but some think more could be done. The bank's slow progress on crypto regulations has been a concern. It's been eight years since they started working on these rules, and some think they need to speed up. Without clear rules, businesses might look elsewhere for friendlier regulations. Despite the slow pace, the bank's message is clear: innovation is welcome, but stablecoins need strong controls to function like money.