BlockBeats report: On May 20, Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, stated at the City Week 2026 conference in London that the central bank’s future strategy will focus on tokenization to modernize the UK’s financial system. She noted that future retail payment systems should include multiple interchangeable forms of money, including tokenized deposits and stablecoins, and that shared ledger technology has the potential to reduce payment costs, increase speed, and minimize intermediation.
Breeden proposes that an ideal multi-currency system should foster competition and choice—allowing the public to make payments using tokenized deposits, regulated stablecoins, and potentially retail central bank digital currencies (CBDCs), in addition to traditional bank deposits.
In terms of specific measures, the Bank of England plans to release a draft framework for systemic stablecoins next month and finalize it by the end of this year. To mitigate early risks associated with rapid adoption, the central bank may impose a temporary cap on the total supply of stablecoins. Breeden also stated that banks should be encouraged to adopt new technologies in their own issued currencies and ensure that tokenized deposits can be used for interbank payments, not just between customers of the same bank.
In addition, the Bank of England will continue to support the UK government’s pilot program for tokenized sovereign bonds, known as “Digital Gilt,” and will release conclusions from the CBDC project’s design phase later this year. Breeden stated that the current priority is for regulators, the government, and the industry to work together to build upon the existing strong foundation and further develop the UK’s tokenized finance ecosystem.