The Bank of England (BoE) is racing to keep pace with the United States in developing a clear framework for stablecoins — digital assets pegged to fiat currencies like the pound or dollar. Speaking at a London conference on November 5, 2025, Deputy Governor Sarah Breeden said the UK’s stablecoin rules will be unveiled soon and implemented “just as quickly as the US.”
“This is a fabulous opportunity for coordinated implementation,” Breeden told the audience, signalling that Britain wants to move in step with Washington on regulating crypto-linked payment systems.
Temporary caps to protect the banking system
Under the upcoming framework, the BoE plans to impose temporary limits on how much stablecoin individuals and businesses can hold — reportedly £20,000 per person and £10 million for firms. Breeden said these limits are a precautionary measure to protect bank balance sheets and ensure mortgage funding remains stable during the transition to digital money.
“The UK’s financial structure is different,” she explained. “Our mortgage system relies heavily on commercial banks — not federal agencies like in the U.S. So, we have to be careful not to drain deposits too quickly.”
Breeden stressed that the restrictions are temporary and will be lifted once the BoE is confident that stablecoins no longer pose systemic risks.
Industry divided on new rules
The crypto industry’s response has been mixed. Some analysts welcomed the BoE’s urgency, calling it a sign the UK is serious about innovation. Others, however, argued the caps could stifle adoption.
“While there are indications in the press that this policy may be under review, we believe it remains critically important that these limits are recalibrated,” marked Simon Jennings, the Director of the UK Cryptoasset Business Council.
Still, many experts view the plan as a necessary step toward stability. “Innovation shouldn’t mean taking higher financial or operational risks,” Breeden said — echoing her belief that sound regulation builds long-term trust.
A defining moment for the UK’s digital-asset future
As the UK prepares to consult on its stablecoin rules, the message from Threadneedle Street is clear: the country wants to compete globally — but not recklessly.
The move represents a turning point for Britain’s financial system, setting the groundwork for a digital-money ecosystem that blends innovation with stability.
If implemented smoothly, the UK could finally position itself as a trusted bridge between traditional banking and the next generation of crypto finance.
