What did the Bank of England say about tokenisation?

Bank of England Deputy Governor Sarah Breeden said tokenisation could lower costs, improve payment efficiency and increase competition across UK financial markets. The BoE said digital money systems must remain trusted and interoperable as the sector evolves.

What is tokenisation in finance?

Tokenisation is the process of representing assets or money on digital ledgers or blockchain-based systems. It can allow faster settlement, programmable transactions and more efficient movement of financial assets.

Why is the Bank of England supporting tokenised payments?

The central bank believes tokenised financial infrastructure could modernise payments and securities settlement while reducing friction in financial markets. Officials also see potential for greater competition and innovation from new digital payment models.

What types of digital money could exist in the UK under the BoE’s vision?

The Bank of England said traditional bank deposits, tokenised bank deposits, regulated stablecoins and potentially a retail CBDC could coexist. The central bank stressed that central bank money would still remain the “anchor” of the financial system.

What is a retail CBDC?

A retail central bank digital currency is a digital version of sovereign money issued directly or indirectly by a central bank for public use. It functions differently from cryptocurrencies because it is backed by the state rather than decentralised networks.

Is the UK definitely launching a digital pound CBDC?

Not yet. The BoE’s CBDC Academic Advisory Group said a retail CBDC may not be strictly necessary, although it could still play a useful supporting role as cash usage declines.

Why is the Bank of England considering near-24/7 settlement systems?

The BoE said longer settlement operating hours would better support tokenised securities markets and cross-border digital payments. Near-continuous settlement is becoming more important as blockchain-based markets operate around the clock.

What does the Bank of England’s softer stance on stablecoins mean?

The BoE has recently reconsidered earlier proposals that would have imposed stricter reserve and backing rules on pound-denominated stablecoins. Policymakers appear increasingly focused on balancing innovation with financial stability to keep the UK competitive in digital assets.

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BoE backs tokenisation to modernise UK payments

Written by Brie CarterPublished May. 20 2026Last Updated May. 20 2026

Bank of England Deputy Governor Sarah Breeden said tokenisation could improve payment efficiency, reduce costs and strengthen competition across the UK financial system as digital asset infrastructure evolves.

Speaking at City Week in London, Breeden said tokenised money and assets could accelerate settlement and improve financial market functionality while preserving trust and interoperability across payment systems.

“Alongside traditional bank deposits, people should be able to pay with tokenised bank deposits, regulated stablecoins and, potentially, a retail central bank digital currency,”

Breeden said, according to the speech transcript.

Breeden added that central bank money would remain the “anchor” of the monetary system even as private-sector innovation around regulated stablecoins and tokenised deposits expands.

The comments followed a proposal from the Bank of England to extend operating hours for its core settlement infrastructure toward near-24/7 availability to support tokenised securities markets and cross-border payments.

The UK central bank has also recently reconsidered parts of its earlier approach to pound-denominated stablecoins, including whether to ease limits on consumer holdings as policymakers seek to strengthen Britain’s position as a competitive digital asset hub.

A January report from the BoE’s CBDC Academic Advisory Group said a retail central bank digital currency may not be strictly necessary to preserve monetary uniformity, although it could still play an important supporting role as cash usage declines across the economy.