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Bank of England to get innovation mandate covering stablecoins
The BoE would have financial stability as its primary goal, while a new secondary objective would cover stablecoin-based digital settlement assets and payments innovation, with annual reporting to Parliament.
The UK government plans to expand the Bank of England’s remit by adding a secondary objective focused on innovation in digital payments, including stablecoins, while keeping financial stability as the central bank’s primary duty, according to HM Treasury announcements cited by Cointelegraph.
The proposed mandate would apply to payment systems that use digital settlement assets such as stablecoins. It would build on an existing approach the UK uses to regulate central counterparties and central securities depositories.
Cointelegraph reports that the change is expected to be implemented through amendments to the Financial Services and Markets Bill, scheduled for further debate in the House of Lords on Sept. 7 and 9. The BoE would also report annually to Parliament on progress toward the payments innovation objective, with the mandate’s effectiveness depending on how the bank uses that reporting requirement.