Bank of England Told to Innovate on Payments and Digital Currencies
The Bank of England has been tasked by the UK government to innovate on payments and digital currencies. The central bank will have a new secondary objective to support innovation in payment systems and new forms of digital currencies alongside its main goals of financial stability.
This change is part of the Financial Services and Markets Bill, which is set to be implemented through amendments. The Bank will report against this new objective annually.
City Minister Lucy Rigby said: “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.”
The move is seen as a response to Labour's National Payments Vision (NPV), which was unveiled by former Chancellor Rachel Reeves in 2024. The NPV aims to overhaul the payments sector with updated regulation to support innovation.