UK WANTS THE BOE TO BECOME A NEW DRIVER FOR STABLECOINS
The UK government is proposing to give the Bank of England (BoE) an additional mandate to promote innovation in stablecoins and digital payments.
The proposed amendment to the Financial Services and Markets Bill will be debated further in the House of Lords on September 7 and 9. If approved, the BoE would have to report to Parliament annually on progress in promoting innovation in stablecoin-based payments.
The move is notable because around 99% of the global stablecoin supply is currently denominated in USD, while GBP-pegged stablecoins remain a very small part of the market.
The UK clearly wants to change that position. Making stablecoin innovation an explicit part of the BoE’s mandate could create more room for companies to develop products while helping London remain competitive in the digital asset race.
It also follows a gradual shift in the BoE’s approach. In June 2026, the central bank moved away from plans to cap the amount of stablecoins each individual could hold and instead proposed a £40 billion aggregate issuance cap, while reducing reserve requirements held at the central bank.
The BoE expects to begin accepting applications for GBP stablecoin issuance before the end of 2026.
With the EU already operating under MiCA and the US advancing the GENIUS Act, the UK is pursuing its own approach: maintaining financial safeguards while creating stronger incentives for stablecoin innovation.
How could the stablecoin landscape between USD, EUR and GBP change if central banks begin actively promoting these ecosystems?
Please do your own research carefully before making any transactions (DYOR). $USDC $AKE $DEXE
The UK government is proposing to give the Bank of England (BoE) an additional mandate to promote innovation in stablecoins and digital payments.
The proposed amendment to the Financial Services and Markets Bill will be debated further in the House of Lords on September 7 and 9. If approved, the BoE would have to report to Parliament annually on progress in promoting innovation in stablecoin-based payments.
The move is notable because around 99% of the global stablecoin supply is currently denominated in USD, while GBP-pegged stablecoins remain a very small part of the market.
The UK clearly wants to change that position. Making stablecoin innovation an explicit part of the BoE’s mandate could create more room for companies to develop products while helping London remain competitive in the digital asset race.
It also follows a gradual shift in the BoE’s approach. In June 2026, the central bank moved away from plans to cap the amount of stablecoins each individual could hold and instead proposed a £40 billion aggregate issuance cap, while reducing reserve requirements held at the central bank.
The BoE expects to begin accepting applications for GBP stablecoin issuance before the end of 2026.
With the EU already operating under MiCA and the US advancing the GENIUS Act, the UK is pursuing its own approach: maintaining financial safeguards while creating stronger incentives for stablecoin innovation.
How could the stablecoin landscape between USD, EUR and GBP change if central banks begin actively promoting these ecosystems?
Please do your own research carefully before making any transactions (DYOR). $USDC $AKE $DEXE
