UK Treasury Pushes Bank of England to Back Payment Innovation

The UK Treasury is pushing for the Bank of England to support payment innovation, including stablecoins, while maintaining financial stability.

This means adding a new 'secondary objective' to the Bank's job description: to promote innovation without compromising safety.

In practice, this could lead to clearer rules and faster decision-making for newer payment technologies, such as real-time payment rails and stablecoins.

The Treasury emphasized that financial stability remains the top priority, but by prioritizing innovation, the Bank can create a more favorable environment for fintech firms to operate in the UK.