Recently, the Bank of England has shown a forward-looking stance on digital currency innovation, attracting widespread attention in the financial sector. The Bank's executive director, Sasha Mills, stated that they hold an "open attitude" towards the use of stablecoins in wholesale payments. This statement sharply contrasts with the recent report from the bank for international settlements categorizing stablecoins as "unreliable currency."

Mills emphasized that while financial stability remains a top priority, the Central Bank needs to seek a balance between regulation and innovation following the legal revisions. This policy shift marks the first time the Bank of England has loosened restrictions on the use of stablecoins in wholesale markets, although it still favors the use of Central Bank money for settlements.

In the retail sector, the Central Bank has eased reserve requirements, allowing some funds to be invested in high-quality assets. At the same time, to prevent large-scale outflows of deposits, the Central Bank plans to set temporary limits on the stablecoin holdings of individuals and enterprises.

On the technical level, the Bank of England is developing a synchronization system aimed at settling distributed ledger technology (DLT) transactions through the real-time gross settlement (RTGS) system. Mills called for industry collaboration to jointly build a "hybrid ecosystem" and pointed out the potential of public blockchains as a connecting layer. She emphasized that the London financial center should move from the technology demonstration phase to the construction of a new generation financial system.

However, this change in attitude is not without concerns. The Governor of the Bank of England previously warned that stablecoins could threaten public trust in currency. This indicates that the Central Bank is cautiously weighing potential risks while embracing innovation.

Overall, the UK Central Bank's policy shift reflects its flexibility in addressing the challenges posed by financial technology. By seeking a balance between regulation, innovation, and financial stability, the UK is striving to maintain its competitiveness as a global financial center while also providing valuable references for other countries' central banks.