Story perspectives

BoE Proposes Stablecoin Rules Amid Competitiveness Concerns

11/10/2025

Summary

Story summary

Bank of England (BoE) proposed stablecoin regulations on November 10, 2025, allowing issuers to invest up to 60% of backing assets in government debt and capping holdings at £20,000.
BoE aims to finalize the rules in 2026.
Critics warn that a 40% non-interest-bearing reserve requirement could hinder UK competitiveness against the US.
The proposals target systemically important stablecoins and exclude non-systemic stablecoins from BoE oversight.
Consultation ends February 10, 2026.

History

Historical Context

The Bank Charter Act of 1844 established the Bank of England's monopoly on banknote issuance, requiring notes to be backed by gold or government securities. This act aimed to stabilize the economy after inflationary pressures from the Napoleonic Wars. Today, proposed stablecoin regulations echo this historical tension between innovation and regulation, potentially reshaping the UK's financial landscape.

1 of 2

Story summary

Bank of England (BoE) proposed stablecoin regulations on November 10, 2025, allowing issuers to invest up to 60% of backing assets in government debt and capping holdings at £20,000.
BoE aims to finalize the rules in 2026.
Critics warn that a 40% non-interest-bearing reserve requirement could hinder UK competitiveness against the US.
The proposals target systemically important stablecoins and exclude non-systemic stablecoins from BoE oversight.
Consultation ends February 10, 2026.

1 / 2