Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, announced at the City Week 2026 conference in London that the Bank's future strategy will focus on tokenization to modernize the UK's financial system. The future retail payment system is expected to include interchangeable forms of currency, such as tokenized deposits, regulated stablecoins, and potentially a retail CBDC. The Bank of England plans to release a draft of systemic stablecoin regulations next month, with final rules expected by the end of the year. Temporary limits on stablecoin issuance may be imposed to mitigate early risks. Breeden also highlighted the Bank's support for responsible AI adoption, including in proxy payments and commerce. Additionally, 16 companies, including Euroclear, HSBC, and the London Stock Exchange Group, are preparing to launch in the Bank-FCA digital securities sandbox by the end of 2026.