BoE deputy says tokenization could cut costs, boost competition
The UK central bank said digital money should remain trusted and interoperable as it weighs stablecoin reforms and near-24/7 settlement to support tokenized markets.
The Bank of England is stepping up its focus on digital money, with Deputy Governor Sarah Breeden highlighting tokenization as a potential way to reduce costs, speed settlement and increase competition.
Speaking at London’s City Week on Tuesday, Breeden said tokenization — the representation of assets and money on digital ledgers — could improve the efficiency and functionality of payments and financial markets, provided that trust and interoperability are preserved.
Breeden stressed that central bank money will remain the foundation, or “anchor,” of the monetary system, even as private-sector innovations such as tokenized deposits and regulated stablecoins gain traction.