Market News
Bank of England softens stablecoin stance with new proposals
- Summary
- BoE allows stablecoins to invest up to 60% in short-term government debt
- Bank had been criticised by crypto industry for its tougher stance vs other countries
- But BoE sticks with caps on stablecoin holdings
LONDON, Nov 10 (Reuters) - The Bank of England on Monday proposed that issuers of widely used stablecoins be allowed to invest up to 60% of the assets backing the digital tokens in short-term government debt, part of a raft of new rules that suggest a softening in its approach to the sector.
Stablecoins are digital tokens designed to keep a constant value and often backed by traditional assets such as government debt. The sector is booming, aided by the U.S. agreeing federal rules earlier this year.
