The UK government has tasked the Bank of England with a new objective to support innovation in payment systems and emerging digital money technologies, while maintaining its primary focus on financial stability. This initiative aims to ensure regulatory frameworks adapt to technological changes and foster safe innovation across all regions. The Bank will report annually on progress toward this goal. City Minister Lucy Rigby emphasized the potential of digital payments to transform global financial markets, while Deputy Governor Sarah Breeden welcomed the move as enhancing innovation without compromising stability. The reform extends existing innovation objectives for central counterparties and securities depositories to payment systems, including those using digital assets like stablecoins. Implementation will occur via amendments to the Financial Services and Markets Bill, to be debated in the House of Lords in September 2026.
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