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UK gives Bank of England innovation role
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UK gives Bank of England innovation role

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  • The UK plans to give the Bank of England a new role supporting payment innovation.
  • The role will cover payment systems using digital settlement assets such as stablecoins.
  • Financial stability will remain the Bank’s primary objective under the proposal.

The UK plans to give the Bank of England a secondary role supporting payment innovation, including stablecoins.

The proposed role would cover payment systems using digital settlement assets and emerging forms of digital money.

“Developments in digital payments technology, including tokenisation and DLT, have the potential to transform financial markets across the globe,” said City Minister Lucy Rigby.

The Bank would report to Parliament each year on its progress, while the new role would remain below financial stability.

The government plans to make the change through amendments to the Financial Services and Markets Bill, with debate set for September 7 and 9.

The move follows the Bank’s June stablecoin rules, which set requirements for systemic stablecoin issuers and include a temporary £40 billion issuance cap.

The UK and US also said in July that they intend to support stablecoins in cross-border finance and align their regulatory approaches.

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