Britain plans new Bank of England objective for stablecoins
The British government plans to amend the Financial Services and Markets Bill to grant the Bank of England a secondary objective focused on fostering innovation in digital payments and stablecoins. This move aims to solidify the UK's position as a global leader in financial services while maintaining financial stability as the primary mandate.
Why it matters
This regulatory shift signals a formal integration of digital assets into traditional banking oversight, potentially setting a global precedent for how central banks manage tokenized finance.
The government plans to add the secondary objective through an amendment to the Financial Services and Markets Bill . The central bank would have to report annually to Parliament on how it is advancing innovation in payment systems and digital money, the Treasury said.
The change would turn the government’s push to modernize payments into a formal responsibility for the central bank. Britain is working toward a single regulatory framework covering traditional and tokenized payments, including stablecoins and tokenized deposits, while exploring how the rules should adapt to AI agent payments.
“Whilst financial stability will always remain the Bank's primary objective, this secondary objective will support the Bank to continue to drive innovation in payments and digital finance, ensuring that the UK remains a global leader in financial services,” City Minister Lucy Rigby said, the Financial Times reports.
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