According to the source, the Bank of England will lift stablecoin holding limits once digital assets no longer pose an economic threat and has described the current restrictions as temporary (source: social media post dated Oct 16, 2025). For traders, a confirmed policy removing holding caps would likely increase GBP–stablecoin liquidity on U.K.-facing venues, compress fiat–crypto spreads, and reduce basis risk on GBP pairs, but any positioning should wait for an official publication from the Bank of England or the Financial Conduct Authority to validate timing and scope (source: Bank of England and FCA rulemaking processes for systemic stablecoins). Until an official notice is released, treat the headline as unconfirmed and monitor updates from the Bank of England, the FCA, and HM Treasury for implementation details such as thresholds, timelines, and affected instruments (source: U.K. regulatory communications channels).