The British Treasury will include in the financial services bill a secondary objective requiring the Bank of England to promote innovation in payments and digital money, with an annual report to Parliament. The central bank has abandoned individual holding caps on stablecoins in favor of a global issuance limit of 40 billion pounds per systemic stablecoin. Applications for issuers seeking to launch a pound-denominated stablecoin are expected to open before the end of the year. Approximately 99% of stablecoins in circulation remain dollar-denominated, according to Sasha Mills, Executive Director of the Bank of England. This reform aims to strengthen the United Kingdom’s position in digital financial services against Europe and the United States, which have already regulated these assets.
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