Bank of England Given Legal Duty to Promote Stablecoin Innovation
The Bank of England is being given a new legal duty to promote innovation in payments and digital money, as part of an amendment to the Financial Services and Markets Bill. This secondary objective will require the central bank to report annually on its progress while maintaining financial stability as its primary focus. This move follows pressure from crypto firms criticizing the Bank's conservative approach to digital assets. Recent changes include removing caps on individual stablecoin holdings, setting a £40 billion issuance limit instead, and reducing reserve requirements for issuers to make UK-based tokens more competitive globally. The initiative aims to position the UK as a global leader in financial services innovation. The decision comes amid growing international competition over stablecoins, with regulatory frameworks already established by the EU's MiCA regime and U.S. legislation like the GENIUS Act.
