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UK Lawmakers Open Stablecoin Inquiry as BoE Advances Systemic Oversight Plan

The committee seeks evidence to judge whether the proposed regime is proportionate to financial-stability risks from widespread stablecoin use.

Overview

  • Written submissions are open until March 11, with oral evidence sessions to follow.
  • The review will assess how rapid adoption could shift deposits from banks, affect credit supply and alter payment flows.
  • The Bank of England has proposed temporary holding caps of £20,000 per individual and £10 million per business.
  • The regime envisages at least 40% of reserves held as central‑bank deposits, issuer access to BoE accounts and a liquidity backstop.
  • Regulators aim to finalize the framework by end-2026 with phased implementation toward October 2027 alongside FCA consultations.