U.K. Gives BOE Duty to Support Stablecoin Innovation

The U.K. government plans to amend the Financial Services and Markets Act to include support for innovation in digital payments, including stablecoins and tokenized deposits. This move is aimed at promoting Britain's position as a global financial center.

Under the proposed amendment, the Bank of England (BOE) would have a secondary objective to support the development of new digital payment instruments. The central bank's primary objective of maintaining financial stability remains unchanged.

The Financial Conduct Authority recently finalized a regulatory framework for crypto firms and stablecoin issuers in the U.K., which will come into effect in October 2027. Companies can start applying for licenses on September 30.