🇬🇧 BoE’s £20K Cap: Aave Founder Calls UK “Losers” – Crypto Drama Unfolds! 💸

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The Great British Stablecoin Fiasco: A Tale of Caps, Clowns, and Crypto Tears

  • The Bank of England (BoE), in a move that screams “we’re still stuck in the 19th century,” proposed capping individual stablecoin holdings at £20,000 and £10 million for businesses. Because nothing says “financial innovation” like arbitrary limits. 🧐
  • Stani Kulechov, the Aave founder with a flair for drama, slammed the proposal as a “step backward” and accused the BoE of “choking the market.” He then proceeded to call the UK and its consumers “losers,” because why not add a little salt to the wound? 🍿
  • Apparently, UK stablecoins are now “inefficient, uncompetitive, and unattractive.” Sounds like the perfect Tinder bio for the BoE’s policy. 💔

Stani Kulechov, the co-founder of Aave (and unofficial spokesperson for “Why Are We Doing This?”), took to X to vent his frustration. According to him, the BoE’s plan is like giving a plant just enough water to survive but not enough to thrive. 🌱💀

The BoE’s £20K cap is like handing someone a Ferrari and saying, “You can only drive it in the parking lot.” 🚗🅿️

Issuers forced to keep 40% of reserves unremunerated? Might as well just bury the money in the backyard. 🏦💰

– Stani.eth (@StaniKulechov) November 12, 2025

The BoE, in its infinite wisdom, published a consultation paper outlining its regulatory framework for “systemic stablecoins.” Because what the world needs right now is more paperwork. 📑😴

Kulechov’s Hot Take: The UK is a Loser, and So Are You

Kulechov didn’t hold back, calling the proposal “inefficient, uncompetitive, and unattractive.” He also expressed concern that HM Treasury might follow suit, turning the UK into the financial equivalent of a participation trophy. 🏆🤡

One user replied, “Completely agree – this approach misunderstands what makes stablecoins powerful in the first place.” Translation: The BoE is like a grandparent trying to use TikTok. 🤦‍♂️

The Broader Context: Caps, Caps, and More Caps

Under the proposal, individuals can hold up to £20,000 in stablecoins, while businesses get a whopping £10 million. The BoE claims this is to prevent “rapid, large-scale deposit outflows,” which is just a fancy way of saying they’re scared of change. 🐢💨

Issuers will also have to keep 40% of reserves as unremunerated deposits at the BoE, because why let money work for you when it can just sit there? 🏛️😭

There’s Still Time for the BoE to Redeem Itself (Maybe)

While the BoE insists this is about “balancing innovation with safety,” Kulechov argues it’s more like “balancing innovation with a brick wall.” The consultation period is open until early 2026, so there’s still time for someone to knock some sense into them. ⏳🙏

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2025-11-12 20:54