BoE proposes changes to systemic stablecoin regime
Breeden says aim is to ‘build trust’ as issuers no longer have to hold 100% of reserves at bank
The Bank of England has scaled back the proportion of reserves that systemic issuers of sterling stablecoins will need to hold in unremunerated accounts at the central bank.
In proposals announced today (November 10) the BoE said issuers of sterling stablecoins would only need to hold 40% of their reserves at the bank, rather than the previous level of 100%. The remaining 60% could be held in short-term gilts.
However, issuers would be permitted to hold 95% of their reserves in UK government debt
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