The UK government is set to give the Bank of England a new mandate: help drive the development of payment systems and digital currencies, including stablecoins. While the central bank’s main job remains keeping the financial system stable, these changes will be written into the Financial Services and Markets Bill. Under this new direction, the Bank of England will have to report back to Parliament every year on its progress.

What’s Changing

On top of its traditional responsibilities, the Bank of England will now be tasked with supporting the growth of payment infrastructure and digital assets—including stablecoins. This mandate officially puts the central bank in charge of creating the right environment for these innovations, while still keeping a close eye on oversight and regulation.

Financial Stability Still Comes First

Even with this expanded role, financial stability stays front and center. The approach to digital currencies and stablecoins will factor in the potential risks these assets could pose to the payment system and market players.

Legislative Framework and Accountability

The proposed changes will be included in the Financial Services and Markets Bill. The Bank of England will be required to deliver yearly reports to Parliament, outlining its progress and results in this new area of responsibility.