UK Wants Central Bank to Support Stablecoin Innovation - PYMNTS.com — 2026-08-27

## Short Segments The Bank of England is set to receive a new mandate to foster innovation in stablecoins and digital money. This move by the UK government aims to position the country as a leader in digital finance while maintaining financial stability. Coming up, we'll explore how this shift could impact global financial services. Also on today's episode, JPMorgan considers launching its own stablecoin amidst a growing shift towards digital assets, and Hedera backs ETHOnline 2026 with $15,000 in bounties for innovative builds. Bank of England set for new innovation mandate covering stablecoins. The UK government plans to amend the Financial Services and Markets Bill, giving the Bank of England a secondary objective to support innovation in payment systems and digital money, including stablecoins. While financial stability remains the primary focus, this new mandate integrates digital payment innovation into the central bank's responsibilities. This development signals a significant shift in how the UK approaches digital finance, potentially making it a hub for stablecoin and digital money innovation. For issuers and developers, this could mean a more supportive regulatory environment, encouraging further advancements in digital payment systems. UK Government tells Bank of England to support innovation in payment systems. The British government has unveiled plans to give the Bank of England a new statutory objective to support innovation in payment systems and digital money, such as stablecoins. This move aims to formally integrate digital payment innovation into the central bank's responsibilities, positioning the UK as a leader in digital finance. For payment companies and developers, this could mean a more conducive environment for innovation, potentially leading to new opportunities in the digital payments landscape. Britain plans new Bank of England objective for stablecoins. The UK government is set to give the Bank of England a new statutory objective to support innovation in payment systems and digital money, including stablecoins. This secondary objective aims to foster innovation while maintaining financial stability as the primary duty. For regulators and financial institutions, this development could lead to a more balanced approach to innovation and stability, encouraging the growth of digital finance in the UK. JPMorgan weighs stablecoin as banks shift to digital assets. JPMorgan is considering launching its own stablecoin as part of a broader strategy to embrace digital assets. This move comes as major banks explore a global stablecoin consortium, and thousands of smaller banks form the BankChain Alliance. While no product is currently underway, the potential launch of a JPMorgan stablecoin could significantly impact the competitive landscape for stablecoin issuers and financial institutions, highlighting the growing importance of digital assets in the banking sector. JPMorgan hints at possible in-house stablecoin issuance; customer demand and regulation are variables. JPMorgan has left open the possibility of issuing its own stablecoin in the future, depending on customer demand and regulatory changes. While no specific product is currently in development, the bank's consideration of a stablecoin reflects the increasing interest in digital assets among traditional financial institutions. For customers and regulators, this could mean more options and considerations in the evolving landscape of digital finance. Hedera backs ETHOnline 2026 with $15K in bounties for x402 agentic payments and tokenization builds. Hedera has announced $15,000 in bounty prizes for the upcoming ETHOnline 2026 hackathon, focusing on x402 agentic payments and tokenization builds. The event, running from September 4 to September 16, offers a total prize pool of over $100,000. For developers and innovators, this presents an opportunity to explore new payment models and tokenization solutions, potentially driving advancements in the blockchain space. ## Feature Story UK wants the central bank to support stablecoin innovation. The British government has announced plans to give the Bank of England a new statutory objective to support innovation in payment systems and digital money, including stablecoins. This move aims to ensure that regulation keeps pace with technological advancements, positioning the UK as a global leader in digital finance. City Minister Lucy Rigby emphasized that while financial stability remains the Bank's primary objective, this secondary mandate will drive innovation in payments and digital finance. The Bank of England will be required to report annually to parliament on its progress, highlighting the government's commitment to fostering a supportive environment for digital finance innovation. Stablecoins, designed to hold a steady value, have rapidly grown in recent years, particularly in crypto trading and payments. The UK's decision to formally integrate digital payment innovation into the central bank's responsibilities reflects a strategic shift towards embracing digital finance. For global businesses, DAOs, and Web3 startups, this development signals that compliant stablecoin usage could become a structural advantage rather than a regulatory risk. The amendment to the Financial Services and Markets Bill will give the Bank of England a secondary statutory objective, supporting innovation while maintaining financial stability as its primary mandate. This move by the UK government is not just another policy headline; it represents a significant step towards positioning the country as a hub for digital finance. By supporting innovation in stablecoins and digital money, the UK aims to attract global businesses and developers, fostering a vibrant ecosystem for digital finance. For issuers, custodians, and payment companies, this could mean a more supportive regulatory environment, encouraging further advancements in digital payment systems. As the UK continues to lead in financial services, the integration of digital payment innovation into the central bank's responsibilities could pave the way for new opportunities and growth in the digital finance sector.