U.K. Crypto Groups Hit Out at BoE Plan to Limit Stablecoin Ownership (FT)

A Financial Times (FT)article reported that cryptocurrency groups are strongly opposing the Bank of England (BoE) plan to limit how many stablecoins individuals (£10,000–£20,000) and businesses (£10 million) can hold, a step that would make the UK’s rules much stricter than those in the US or EU. The BoE’s proposal targets “systemic” stablecoins widely used for payments, citing concerns that large holdings could drain bank deposits and threaten financial stability. Critics argue these caps would be difficult and costly to enforce, disadvantage the UK, and hamper the benefits of stablecoins for payments innovation. Industry leaders and academics say such limits would require complex systems like digital IDs, and warn that regulatory delays are already causing the UK to lose leadership in the digital economy. The central bank says the caps could be transitional, with further consultation planned later this year. [Source: FT]

Chilean Central Bank to Start CBDC Proof-of-Concept Work (BCCh)

[August 5, 2025] The Central Bank of Chile (BCCh) published its annual payment systems report in which it announced that it will develop a proof-of-concept (POC) to study the technology behind a central bank digital currency (CBDC) by the end of 2025. The POC will involve controlled testing and simulated transactions in which the BCCh will be the sole participant. The BCCh began its CBDC work in 2021, and in March 2024 it published a report in which it gave an account of lessons learned from different stakeholders. [Source: BCCh]

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I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.