Bank of England Opens Stablecoin Operations, Three Steps to Understand the Impact

The Bank of England has just released a regulatory framework for stablecoins: each stablecoin issuance cap is 40 billion GBP, and they can operate compliantly starting in 2027. Here's a three-step breakdown:
1️⃣ Reserve assets can allocate 70% to short-term government bonds (up from the previous cap of 60%), increasing interest income potential
2️⃣ The GENIUS Act and MiCA both prohibit stablecoins from paying interest — but if a jurisdiction relaxes these restrictions, capital will flood in instantly, similar to the European dollar market of the 1960s
3️⃣ USDT with a $190 billion market cap vs USDC with $77 billion — one competes on liquidity, the other on compliance. Accelerating global divergence makes the stablecoin race the real battleground
#USDT #USDC #Stablecoins