Bank of England Deputy Governor Breeden outlines vision for tokenization and stablecoins, plans to publish draft rules for systemic stablecoins next month.

robot
Abstract generation in progress
ME News, May 20 (UTC+8), Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, stated at the London City Week 2026 conference that the central bank's future strategy will focus on tokenization to modernize the UK financial system. She pointed out that future retail payment systems should include multiple interchangeable forms of money, including tokenized deposits and stablecoins, and that shared ledger technology is expected to reduce payment costs, increase speed, and reduce intermediaries.
Breeden proposed that an ideal multi-currency system should promote competition and choice — in addition to traditional bank deposits, the public should be able to use tokenized deposits, regulated stablecoins, and potential retail central bank digital currencies (CBDCs) for payments.
In terms of specific measures, the Bank of England plans to publish a draft rule for systemic stablecoins next month and finalize it by the end of this year. To prevent early risks from rapid adoption, the central bank may set a temporary cap on the total issuance of stablecoins. Breeden also stated that banks are encouraged to adopt new technologies in their own issued currencies and ensure that tokenized deposits can be used in interbank payments, not just among customers of the same bank.
In addition, the Bank of England will continue to support the UK government's pilot tokenized sovereign bond "Digital Gilt" program and will release the conclusions of the CBDC project design phase later this year. Breeden said that the current task is for regulators, the government, and the industry to work together to deepen the UK tokenized financial ecosystem on the existing solid foundation. (Source: BlockBeats)
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned