UK government ministers urge Bank of England to enhance digital currency innovation

The UK government is leaning on the Bank of England to pick up the pace on digital currency development, signaling that ministers view the central bank’s approach as too cautious for a country trying to stay competitive in global finance. The push comes as the UK builds toward a consequential decision: whether to launch a digital pound, the country’s own central bank digital currency. A detailed blueprint and formal assessment are expected by the end of 2026. A multi-money future takes shape What the UK is quietly assembling is something officials describe as a “multi-money ecosystem” — a financial infrastructure where stablecoins, tokenised assets, and a potential digital pound all coexist alongside traditional banking rails. On June 22, 2026, the BoE published a consultation draft focused specifically on sterling-denominated stablecoins, attempting to encourage innovation without introducing new risks to financial stability. In May 2026, the BoE and the Financial Conduct Authority jointly issued a Call for Input on market tokenisation, including criteria for stablecoins to be used within the Digital Securities Sandbox. Pilot programs and sovereign debt experiments The Digital Sec...