Bank of England Gets New Objective to Support Digital Currency Innovation

The Bank of England has been given a new secondary objective to support innovation in payment systems and digital currencies, as part of the UK government's efforts to modernize the country's payments sector.

The Treasury announced that the central bank will now have two objectives: financial stability, which remains its primary goal, and supporting innovation in payment systems, including those using digital settlement assets such as stablecoins.

This change is part of a wider government program to promote the development of new financial technologies and encourage the use of emerging payments methods. The Bank will report annually on its progress against this new objective to Parliament.

The UK's City Minister, Lucy Rigby, said that this move would help the country respond to technological advancements in financial services. Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, welcomed the announcement, noting that it would strengthen efforts to encourage innovation without compromising the central bank's core mandate.