Coinbase CEO criticizes the UK's proposed stablecoin holding limit, stating it may hinder financial innovation

Coinbase CEO Brian Armstrong warned on Tuesday that the Bank of England's proposed cap on stablecoin holdings could cause the UK to lose its status as a global financial center. He stated, "The UK's stablecoin rules are being finalized, but they may hinder the UK's global competitiveness in the digital economy. The current direction of the rules is counterproductive and will become a barrier to innovation."

The Bank of England proposed last year to set the cap on individual stablecoin holdings at $26,350 (£20,000) and the cap for businesses at $12.7 million (£10 million), requiring 40% of reserves to be held in non-interest-bearing central bank accounts. UK lawmakers also warned that this plan would "hinder innovation, limit adoption, and push activity overseas."