The United Kingdom Plans New BoE Mandate to Support Stablecoin Innovation

TL;DR

• The United Kingdom plans to incorporate a formal secondary objective into the Bank of England to drive innovation in stablecoins and digital payments.
• The BoE will be required to report annually to Parliament on its progress. Financial stability will remain the primary responsibility.
• The FCA finalized rules for stablecoin issuers; firms will be able to apply for authorization from September 30. The regime will be in effect in October 2027.

The United Kingdom government announced its intention to incorporate a new secondary statutory objective into the Bank of England (BoE) aimed at supporting innovation in stablecoins, digital money, and payment systems. The measure would be implemented through an amendment to the Financial Services and Markets Bill and would require the central bank to submit annual reports to Parliament on its progress in this area, as reported by the Treasury.

This change makes the modernization of payments work the government had been driving a formal responsibility of the central bank. The initiative aims to build a unified regulatory framework covering both traditional and tokenized payments, including stablecoins and tokenized deposits, while also paying attention to payments made by artificial intelligence agents.

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