BoE Told to Speed Up Digital Asset Adoption Amid UK Government Pressure

The UK government has tasked the Bank of England (BoE) with accelerating the adoption of digital assets, including tokenised funds and stablecoins. This move aims to position the UK as a leader in digital asset development at a time when their use is growing rapidly.

The BoE will now have a 'secondary objective' to support innovation in digital currencies and payments. This new mandate is part of an amendment to the Financial Services and Markets Bill, which is set to be debated in September.

The BoE has faced criticism from fintech startups and digitally native financial services participants for moving too slowly in its supervision of digital assets service providers. The central bank will now oversee the use of digital assets in capital markets and ensure that innovation does not compromise financial system integrity.