Whitehall Pushes Central Bank to Speed Up Payment System Overhaul
Whitehall has stepped in to push for faster payments modernisation at the Bank of England. In a move seen as a rebuke, HM Treasury introduced a new statutory mandate that requires the central bank to focus on innovation for payment systems and digital currencies.
The decision is a response to industry leaders' complaints about the slow pace of progress in implementing the National Payments Vision. This initiative aimed to make the UK a global leader in next-generation payment systems, but its execution has been hindered by regulatory friction.
The Treasury's intervention is not just about payments modernisation; it also reflects a broader government goal to maintain the UK's financial competitiveness post-Brexit. By adding an innovation duty, Whitehall is giving commercial fintechs and financial institutions a formal mechanism to challenge supervisory friction.