UK Lawmakers Urge Revisions to Bank of England's Stablecoin Framework

According to PANews, a coalition of UK cross-party lawmakers has addressed a letter to Chancellor Rachel Reeves, urging modifications to the Bank of England's proposed stablecoin framework. The lawmakers expressed concerns that the current draft could stifle innovation and lead to capital flight. They highlighted that the framework's restrictions on the use of stablecoins in wholesale markets, the prohibition of interest on reserves, and a holding cap of £20,000 might diminish London's appeal as a global financial hub, potentially driving investors towards dollar-pegged alternatives. The letter advocates for the establishment of a forward-looking stablecoin framework to ensure international investment, support the growth of high-value fintech, and reinforce the UK's position as a global innovation center.