Bank of England set for new innovation mandate covering stablecoins
The UK plans to give the Bank of England a new secondary mandate to support innovation in payment systems and digital money, including stablecoins, while keeping financial stability as its primary objective. HM Treasury says the central bank would report annually to Parliament on progress. The change is expected to be added through amendments to the Financial Services and Markets Bill, with debate scheduled in early September. The move fits a broader UK push on stablecoins through regulation, testing, and US coordination. Recent steps include a Digital Pound Lab experiment on cross-border trade payments using a stablecoin and a simulated digital pound, and a UK-US statement backing stablecoins in cross-border finance. Industry concerns remain over BoE rules finalized in June, especially reserve requirements for systemic stablecoin issuers.
