UK Crypto Groups Slam BoE’s Proposed Stablecoin Holding Caps

The defense groups in the United Kingdom called on the Bank of England to move forward in plans to reduce the individual Stablecoin holdings.

In the discussion of November 2023 paperThe bank relied on putting individual covers on a digital pound between 10,000 British pounds and 20,000 pounds and requesting comments in a minimum possible 5,000 pounds.

According to Monday Times Times a reportIndustry groups criticized the plan, saying it will be difficult and costly to implement and can leave the UK backward from other judicial states.

According to Coinbase, Tom Duff Gordon, Vice President of International Policy at Coinbase, said that the borders will be bad for savings in the United Kingdom and the pound itself. “No other major jurisdiction is necessary to impose hats,” he said.

Stablecoin Borders “Do not work in practice”

“The border simply does not work in practice.”

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“The exporters do not have a vision of those who carry symbols at any time, so the enforcement of hats requires a new costly and complex system.”

Last week, Cointelegraph told UKCBC to “create a via Atlantic corridor for payments in Stablecoins” between the United Kingdom and the United States. The Bank of England’s plan will limit the effectiveness of such a system.

UK organizers fear that Stablecoins can destabilize the traditional financial ecosystem. In early April, the UK’s financial policy committee realized that Stablecoins and Crypto markets expanded significantly last year, which led to an increase in organizational attention.

The committee noticed at the time that “even with the appropriate organization, the largest use of foreign currencies denominated can make some economies vulnerable to the replacement of the currency.” Similar concerns were raised in other countries as well.

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The bank, which runs Stablecoin and replace the currency

Earlier this month, Christine Lagarde, the European Central Bank President (ECB), called for policy makers to address the gaps in the organization of Stablecoin. Among the other statements, the alert that could result from the American Stablecoin policies “can” not only lead to more losses in fees and data, but also in the euro deposits that are transferred to the United States and in additional strengthening of the role of the dollar in the border payments. “

Banks are also afraid that they are not able to compete with Stablecoins if they are allowed to pay returns to their holders. In late August, Ronit Gus, head of the Finance Council, warned that paying interest on Stablecoin deposits could provoke a wave of the bank’s outflows similar to the mutation of the Money Market Fund in the 1980s.

Some in the encryption industry, on the other hand, indicate that banks must intensify their game for competition. “If local banks are concerned about the competition from Stablecoins, they must pay more benefit on deposits,” said Hogan’s investment head, Hagan, recently.

George Osborne, a former UK counselor, who turned into encryption pressure groups, said that the UK is behind the digital asset market, especially in the Stablecoins.

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