Crypto· Altcoins

Bank of England Handed New Legal Duty to Foster Stablecoin Innovation

In brief The Treasury said Wednesday it will give the Bank of England a secondary statutory objective to support innovation in payments and digital money. The duty arrives via an amendment to the Financial Services and Markets Bill, which reaches the House of Lords next month.

By AI NewsroomPublished about 13 hours agoUpdated about 4 hours ago3 views

Bank of England Handed New Legal Duty to Foster Stablecoin Innovation

Why It Matters

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Key Facts

Fact 1: When the Bank set out its rules for sterling-pegged tokens in June, it dropped planned caps on how much of a stablecoin any one holder could own, replacing them with a £40 billion issuance limit.
Fact 2: The EU's MiCA regime has applied to stablecoin issuers since June 2024, with the full framework in force that December, and the U.S.
Fact 3: Some 99% of stablecoins in circulation are dollar-denominated, Mills said in May, leaving sterling tokens a sliver of a market the Bank now wants to grow.

The Bank will have to report to parliament annually on how it is advancing the objective. The Bank of England is to be handed a legal duty to promote innovation in payments and digital money, in the clearest signal yet that ministers want the central bank to move faster on stablecoins. The Treasury said Wednesday it would create a statutory "secondary objective" covering payment systems and digital money, subordinate to the Bank's primary responsibility for financial stability.

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