The UK government plans to give the Bank of England a new secondary objective to support digital currency and payments innovation, while leaving its primary financial stability mandate unchanged. City Minister Lucy Rigby said tokenization and distributed ledger technology have the potential to reshape global financial markets, and the new objective would help the central bank continue advancing payments and digital finance innovation.
The move is aimed at reinforcing the UK’s position as a leading global financial services center. The development follows the UK and the US forming a joint working group to promote stablecoin adoption. In June, the Bank of England dropped a previous proposal to cap the amount of stablecoins that individuals and businesses could hold, and Deputy Governor Sarah Breeden welcomed the new mandate.
UK to Give Bank of England New Mandate to Support Digital Currency Innovation
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