Bank Of England To Ease Stablecoin Restrictions

(MENAFN- Yolo Wire) The Bank of England is expected to ease proposed restrictions on stablecoins following heavy lobbying from digital asset firms.

Specifically, the British central bank is expected to remove a clause that would limit individuals to owning a maximum of 20,000 pounds ($27,000 U.S.) of a stablecoin.

Stablecoins are cryptocurrencies pegged to the value of another asset, usually the U.S. dollar.

Over the past year, stablecoins have moved to the forefront of the crypto sector, helped by the establishment of formal regulations in major jurisdictions such as the U.S.

The Bank of England's proposed restrictions risked preventing the United Kingdom from being competitive in the digital economy, crypto industry participants argued.

The central bank is also reportedly ready to lower its planned requirement that at least 40% of stablecoin-backing assets should be deposited with the Bank of England, earn no interest, and 60% invested in short-term U.K. government debt.

Those requirements are more restrictive than in other markets such as the U.S., argue lobbyists for the crypto industry.

Stablecoin issuers and advocates are eager for the cryptocurrencies to provide yield, or rewards, to investors.

The British government and central bank have been trying for several years to finalize regulations governing digital assets such as Bitcoin (CRYPTO: $BTC).

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