The UK is progressing digital money regulation through several workstreams led by the Government, industry, and regulators. HM Treasury and the Bank of England are considering a digital pound to complement cash and deposits, aiming to boost the digital economy.
The digital pound: Progress, hurdles, and the road ahead
The Bank of England (BoE) and HM Treasury are actively considering a digital pound to sit alongside cash and bank deposits, aiming to boost the UK’s digital economy. This forward-looking initiative is now in its design phase, with a final decision on rollout anticipated after 2026, subject to new legislation. In the article below, we delve into the latest updates and strategic direction for the BoE’s digital currency plans. We also spotlight the key challenges and opportunities this development could present for businesses and financial institutions.
UK regulated liability network (RLN)- the opportunity, but what’s left to do?
The Regulated Liability Network (RLN) initiative is an ongoing industry collaboration experimenting with programmable money for wholesale payments and settlement. It proposes an infrastructure for managing a variety of regulated digital money on an interoperable network. The infrastructure aims to facilitate programmable payments and tokenised commercial bank deposits to improve security, reduce fraud, and increase efficiency in several financial activities including property transactions.
Read more on the RLN project and the risks and opportunities that it presents here.
Proposed regulatory regime for sterling-denominated systemic stablecoins
On 10 November 2025, the Bank of England (BoE) published a consultation paper setting out its proposed regulatory framework for systemic stablecoins. Stablecoins are digital assets designed to maintain a stable value and can be used for both retail payments and wholesale settlement. Key proposals include requirements for the composition of backing assets held by systemic stablecoin issuers. Issuers will be permitted to hold up to 60% of their backing assets in short-term UK government debt, with the remaining 40% held as deposits at the BoE.
Read more on the proposed regime and commercial implications for relevant firms here.
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Disclaimer
This article is intended for general information purposes only and does not constitute legal advice. For advice specific to your situation, please contact our team at T & M Legis for a consultation with our Legal Experts.
