The Bank of England may scrap limit on stablecoin holdings plan

BlockBeats News, March 12th, according to Cointelegraph, Sarah Breeden, Deputy Governor of the Bank of England, testified before the UK Parliament's Financial Services Regulatory Committee, stating that the central bank is open to approaches for managing stablecoin risks and is not limited to implementing holding limits.

Breeden pointed out that the proposed holding limit aims to prevent a large inflow of bank deposits into stablecoins, which could potentially restrict lending and reduce the credit supply to businesses and households. She stated: "We are indeed open to other ways of achieving this goal. I think you have also heard others mention during the inquiry process that this credit provision risk is a real one."