The UK Treasury announced on August 26 that the Bank of England will receive a new secondary statutory objective to support innovation in payment systems and digital currencies, including stablecoins. The objective supplements the central bank's primary mandate of financial stability.
City Minister Lucy Rigby cited the potential of tokenisation to transform financial markets. Deputy Governor Sarah Breeden welcomed the expanded remit. The Bank of England will report annually to Parliament on its progress toward the innovation objective.
Regulated stablecoins are permitted to operate in the UK from 2027 under a regime jointly overseen by the Bank of England and the Financial Conduct Authority. The consultation on the broader modernisation of UK payment services regulation closes on October 6, 2026.