UK Plans New Bank of England Mandate to Support Stablecoin Innovation

Britain’s finance ministry plans to give the Bank of England a secondary objective to support innovation in payments, including digital currencies and stablecoins. The proposed mandate would sit beneath the central bank’s primary responsibilities for monetary and financial stability. The government says the change is intended to keep regulation aligned with technological shifts and preserve the UK’s position as a leading global financial-services centre.

Under the plan, the Bank of England would have to consider innovation when developing policy and regulation for payment systems and stablecoins, without weakening its core stability duties. The central bank would also report to Parliament annually on its progress, creating a formal mechanism for lawmakers to assess how it balances technological development with consumer protection and systemic risk. The proposal marks the latest step in Britain’s effort to modernise its framework for digital finance.