BoE Gets New Objective to Drive UK Payments Innovation

The Bank of England is set to receive a new 'secondary objective' aimed at promoting innovation in payments technology and digital currencies, including stablecoins. The move comes as part of the UK government's efforts to make the country a global leader in financial services.

The proposed secondary objective would require the bank to report annually on its progress, ensuring that regulation keeps pace with technological advancements. City Minister Lucy Rigby stated that while financial stability remains the Bank's primary focus, this new objective will support innovation in payments and digital finance.

The Bank of England has been criticized by crypto companies for taking a conservative approach to digital assets. However, the bank has made efforts to encourage the growth of regulated stablecoins pegged to the pound, including recently proposed rules and relaxed ownership limits on U.K. stablecoins.