BoE Tests Stablecoin-Digital Pound Link for Cross-Border Trade

Stablecoins are already gaining ground in international transfers outside central bank labs. MoneyGram recently extended its infrastructure to Solana, allowing users to convert cash and stablecoins, with withdrawals available in more than 170 countries. The private sector is moving ahead while the BoE experiments.

For the BoE, the question is less whether multiple digital currencies will coexist than how they will communicate with each other. A British digital pound, if launched, would need to circulate alongside bank deposits, existing payment systems, and likely stablecoins. The current test gives an initial picture of that mix.

The BoE is also advancing on stablecoin regulation. In June it proposed that systemic sterling-denominated stablecoin issuers could place up to 70% of their reserves in remunerated UK public debt. A temporary cap of 40 billion pounds per systemic stablecoin is under consideration. Previous limits on holdings by individuals and businesses were dropped. Final rules are due by the end of 2026, with implementation targeted for 2027.

Separately, the BoE wants to bring its RTGS and CHAPS systems closer to around-the-clock operation, including weekends. International payments and tokenization were cited as reasons for the push. The modernization effort means stablecoins are no longer treated as a crypto curiosity in London. They are entering discussions on the architecture of British payments.

The digital pound remains hypothetical. The BoE keeps testing without promising a launch. Stablecoins, by contrast, are already moving into cross-border transfers and everyday transactions. They recently represented 84% of spending observed on certain crypto cards, according to industry data. The digital pound may come, but stablecoins are not waiting for that decision.