The Central Bank of the United Kingdom published a draft final policy and rules for a systematic stabilization currency, adjusting many of the arrangements set out in last year ' s advisory paper. The new scheme removes the individual and business holding cap and replaces it with a total issuance cap of Pound40 billion for each systematically stable issuer and plans to finalize it by 2026.
For holding limit read issuance ceiling
In a November 2025 consultation paper, the BCB proposed a ceiling of £20,000 for individuals and £10 million for businesses. This arrangement was opposed by industry groups at the time on the grounds that it would restrict the actual use of scenarios such as payments and settlements.
The most recent programme removed the above holding limit and replaced it with a total ceiling by issuer. According to the British Central Bank, this approach can have a similar effect on risk control, but implementation costs are lower and it is easier to land. For users, individuals and enterprises no longer face direct holding limits.
The Central Bank indicated that the ceiling would be managed at the issuer level rather than tracking the balance per user on a case-by-case basis. This approach is also easier to implement for distributed or decentralized networks. The ceiling will be assessed on a regular basis and will be considered for liberalization or cancellation once the broader economic impact of a stable currency on credit availability has become clearer.
How to set a ceiling of Pound40 billion?
According to the British Central Bank, an initial ceiling of Pound40 billion would be sufficient to allow systematic and stable currency issuers to reach a viable scale and to support a daily volume of transactions close to the UK ' s major payment systems.
For reference purposes, the daily average size of the United Kingdom ' s Foster Payments and the banking card payment system is approximately Pound1.4 billion to Pound2.2 billion. The Central Bank also mentioned that this ceiling was approximately 10 per cent of the amount processed on a daily basis by CAPS. In its view, this size could also support the use of a stable currency to settle cash legs in a digital securities sandbox, while avoiding premature excessive restrictions.
Reserve demands a small relaxation.
In terms of reserve arrangements, the BCB has also adjusted its previous programme. Systematic stabilizers can now allocate up to 70 per cent of their reserves to short-term British Treasury debt, up from 60 per cent previously proposed. The rest would need to be deposited in the British Central Bank in the form of interest-free deposits.
The British Central Bank also indicated that it was working with the British Financial Conduct Regulatory Authority to advance a broader system of currency stabilization regulation, including management arrangements for enterprises to move from non-systematic to systematic currency stabilization. Further details are expected to be published with the final rules of the British Financial Conduct Regulatory Authority.