PANews reported on October 16th that, according to Bloomberg, the Bank of England said it would remove proposed limits on the amount of stablecoins that individuals and businesses can hold once digital assets no longer pose a threat to the economy. Deputy Governor Sarah Breeden noted that rapid adoption of stablecoins could trigger a "massive" outflow of bank deposits, hindering the flow of credit to businesses and households. To this end, the Bank of England is considering restrictions on the amount of systemic stablecoins held by clients, the overall size of stablecoins, and the volume of transactions. These restrictions are intended to be "temporary" and will be lifted once it is determined that the transition no longer threatens financing for the real economy. Previously, experts had expressed concern that the restrictions would hinder the adoption of stablecoins pegged to the British pound, but this statement represents a significant softening of the Bank of England's policy stance. Breeden also stated that if initial regulations are relaxed and stablecoin usage surges, subsequent rule changes may be necessary, but large businesses could be exempted from holding additional stablecoins if necessary. She disputed criticism that the UK is lagging behind in the stablecoin sector and stated that the UK will launch a consultation later and finalize a regulatory framework next year that aligns with US objectives.PANews reported on October 16th that, according to Bloomberg, the Bank of England said it would remove proposed limits on the amount of stablecoins that individuals and businesses can hold once digital assets no longer pose a threat to the economy. Deputy Governor Sarah Breeden noted that rapid adoption of stablecoins could trigger a "massive" outflow of bank deposits, hindering the flow of credit to businesses and households. To this end, the Bank of England is considering restrictions on the amount of systemic stablecoins held by clients, the overall size of stablecoins, and the volume of transactions. These restrictions are intended to be "temporary" and will be lifted once it is determined that the transition no longer threatens financing for the real economy. Previously, experts had expressed concern that the restrictions would hinder the adoption of stablecoins pegged to the British pound, but this statement represents a significant softening of the Bank of England's policy stance. Breeden also stated that if initial regulations are relaxed and stablecoin usage surges, subsequent rule changes may be necessary, but large businesses could be exempted from holding additional stablecoins if necessary. She disputed criticism that the UK is lagging behind in the stablecoin sector and stated that the UK will launch a consultation later and finalize a regulatory framework next year that aligns with US objectives.