Bank of England outlines tokenization, stablecoin vision for UK finance
The Bank of England is prioritizing tokenization, stablecoins, and digital assets to modernize the UK's financial and retail payment infrastructure.Summary
Bank of England Deputy Governor Sarah Breeden has announced a strategic focus on tokenization to modernize the UK financial system. The bank envisions a future retail payment landscape featuring interchangeable forms of money, including tokenized deposits, regulated stablecoins, and potentially a central bank digital currency (CBDC).
To facilitate this, the Bank of England is developing a regulatory framework for stablecoins, with draft rules expected soon, and is collaborating with the Financial Conduct Authority (FCA) on a Digital Securities Sandbox to support innovation in tokenized assets. The bank aims to leverage distributed ledger technology to increase efficiency and competition while maintaining rigorous standards for financial stability.
(Source：The Block)