The Bank of England has assured that the limits it proposes for stablecoin holdings are only a temporary measure.
Deputy Governor Sarah Breeden clarified yesterday in a speech that the restrictions, which have been heavily criticized by the industry, are intended as a short-term safeguard for financial stability.
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Breeden said the bank's ultimate goal is to "support a role for stablecoins as part of a multi-money system." The limits are designed to allow the financial system to adjust and give regulators time to oversee their adoption.
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This comes after negative reaction from the industry, which argued that the proposed limits of between £10,000 and £20,000 would stifle innovation and drive businesses away from the UK.