UK Treasury Directs Bank of England to Support Stablecoin and Digital Payments Innovation

The U.K. Treasury has set a new objective for the Bank of England, requiring its regulatory framework to foster conditions for the safe development of digital payments technologies, including tokenization and distributed ledger technology (DLT) like stablecoins. City Minister Lucy Rigby stated that while financial stability remains the Bank's primary objective, this secondary objective will encourage innovation in payments and digital finance, aiming to maintain the UK's leadership in financial services. The Bank of England will provide annual reports on this objective.