Bank of England Gets New Stablecoin Innovation Goal

The British government plans to amend the Financial Services and Markets Bill to include a new objective for the Bank of England, supporting innovation in payments and digital money. The proposed change aims to promote the development of stablecoins and other forms of digital currency while maintaining financial stability.

According to the government, the Bank's primary responsibility remains protecting financial stability, but it will now have a secondary duty to consider innovation when regulating systemic payment systems. This includes digital settlement assets like stablecoins.

The new objective is intended to help the Bank support digital finance without compromising on financial stability. The Bank would report annually to Parliament on its work under this objective, providing lawmakers with an opportunity to examine whether payments regulation is adapting to new technology.