The Bank of England has indicated it is open to alternative methods to manage stablecoin risks, according to Deputy Governor Sarah Breeden. The proposed holding limits are intended to prevent a mass migration of deposits from banks into stablecoins, which industry groups argue could reduce lending and decrease credit availability for businesses and households. The Bank ofEngland has released a consultation paper outlining its proposed regulatory framework for sterling-denominated systemic stablecoins and has stated it will continue monitoring risks associated with unhosted wallets, but ruled out self-custody wallets holding stablecoins.