UK Government Tasks Bank of England to Support Payment Systems Innovation
The UK government has tasked the Bank of England with supporting innovation in payment systems and emerging forms of digital money. This new objective aims to ensure that regulatory frameworks create conditions for these innovations to develop safely and drive growth in every region.
As part of this effort, the Bank will report annually on its progress in tracking technological change. The government believes that developments in digital payments technology, including tokenisation and distributed ledger technology (DLT), have the potential to transform global financial markets.
The Bank's Deputy Governor for Financial Stability, Sarah Breeden, welcomed the announcement, saying it would further support innovation in financial services without compromising on financial stability. The government has already implemented a program to modernize the UK's payments landscape and support new technologies and business models.