UK Gives Bank of England New Objective for Stablecoin Innovation

The UK government plans to add a new objective for the Bank of England, focusing on supporting innovation in stablecoins and digital money. This secondary objective will complement the central bank's primary responsibility of maintaining financial stability.

The proposed change is part of an amendment to the Financial Services and Markets Bill, which would require the Bank of England to report annually on its progress in advancing innovation in payment systems and digital finance.

The UK aims to modernize payments by introducing a single regulatory framework covering traditional and tokenized payments, including stablecoins and tokenized deposits. The government is also exploring how rules should adapt to AI agent payments.