UK Government Gives BoE Formal Mandate to Support Stablecoins
The Bank of England is set to receive formal guidance from the UK government to support stablecoins and digital money. The announcement came on August 27, 2026, through an official HM Treasury release.
The new mandate will give the Bank a secondary statutory objective to support innovation in payment systems and emerging digital money. Financial stability remains the primary duty of the regulator, but it will now be legally required to help stablecoins and other digital settlement assets develop within its oversight.
City Minister Lucy Rigby stated that tokenisation and distributed ledger technology have the potential to transform global financial markets. The goal is to keep the UK competitive as a global financial services hub.
The Bank will now report annually to Parliament on how it advances the payments innovation agenda. This policy shift comes after the BoE eased stablecoin rules, setting a £40 billion issuer limit and removing per-person holding caps in favor of an issuance guardrail.