Crypto Briefing • October 11th 2026, 12:34 PM
Bank of England Pivots Towards Stablecoin Support
Key Summary
The Bank of England has shifted its stance on stablecoins, aiming to be the central bank behind them, with a new cap on issuance and changes to reserves, providing clarity for issuers and users alike.
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Introduction
The Bank of England has made a significant shift in its stance on stablecoins, aiming to be the central bank behind them.New Cap on Issuance
The bank has introduced a new cap of £40 billion on issuance, which will be a temporary guardrail to hold the line while the market finds its footing.Changes to Reserves
The bank has also changed its approach to reserves, increasing the share of reserves that can sit in short-term UK government debt from 60% to 70%.Deputy Governor Sarah Breeden's Framework
Deputy Governor Sarah Breeden has framed the bank's goal around guaranteeing prompt redemption and strong protections for stablecoin users, while making room for central bank support.Timeline
The bank plans to finish implementing the full framework by the end of 2026, with stablecoin operations slated to begin from 2027.Conclusion
The Bank of England's shift towards stablecoin support provides clarity for issuers and users alike, and is a significant step towards a more cooperative approach to the crypto market.#Bitcoin#UK#Crypto#SEC