Bank of England Sets New Rules for GBP-Pegged Stablecoins

The Bank of England (BoE) has released a discussion paper outlining its proposed framework for regulating stablecoins pegged to the British pound. These regulations will be finalized in the second half of 2026, with an open consultation period running through February 10, 2026. The proposal focuses on fiat-backed GBP stablecoins that could gain increased adoption in payment chains and pose a potential threat to financial stability. Algorithmic, commodity-backed, and non-GBP variants are excluded from the scope.