The Bank of England plans a vision for stablecoins and digital finance, with a draft rule for stablecoins set to be released next month

According to The Block, Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, presented a vision for the digitization of the UK financial system at the 2026 London City Week conference, focusing on the integration of regulated stablecoins. A draft rule for systemic stablecoins is planned to be released next month, with the final version to be completed by the end of the year. Breeden pointed out that future retail payment systems should include various interchangeable forms of currency, including digital deposits and stablecoins.

She stated that shared ledger technology is expected to reduce payment costs and accelerate processing speeds, minimizing intermediaries. In addition, smart contracts support customization, conditionality, and automation, further enhancing the efficiency of retail payments. Breeden emphasized that the Bank of England will actively support the responsible adoption of AI technology, including agent payments and commercial transactions.