UK Gives Bank of England New Mandate for Payment System Innovation

The UK government has announced plans to give the Bank of England a new objective aimed at supporting innovation in payment systems and digital money. This move is part of broader efforts to modernize the country's payments sector, encourage new financial technologies, and strengthen its position as a global financial centre.

The new mandate will focus on tokenisation, distributed ledger technology (DLT), and digital settlement assets such as stablecoins. The Bank of England will report annually on its progress against this objective.

Bank of England Deputy Governor for Financial Stability Sarah Breeden welcomed the move, saying it would support innovation across financial services without compromising financial stability.