UK Boosts Digital Finance Hub with New BoE Mandate

The UK government has announced a new initiative to support innovation in digital currencies and payments. The Bank of England will now have a formal role in supporting innovation, with a secondary objective to enhance financial stability while promoting digital finance.

Under the new mandate, the BoE will drop its previous ownership limit for stablecoins and replace it with a 40 billion pound issuance cap. This change is intended to make issuing UK stablecoins more commercially viable.

The move comes as other major jurisdictions advance their own crypto frameworks. The EU passed broad crypto rules in late 2024, while the US encourages Wall Street firms to use blockchain technology.