Response to the Bank of England’s Consultation on Stablecoins Code of Practice

The Bank of England is developing a new Code of Practice for sterling-denominated systemic stablecoins. Bitcoin Policy UK broadly welcomes changes that make the proposed regime less burdensome, including a move to a 70/30 backing model and the replacement of individual holding limits with a temporary £40 billion issuance guardrail. But it argues that significant questions remain about proportionality, competition and the Bank of England’s influence over privately issued money. In this A...