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UK Payments Framework

Definition ∞ The UK Payments Framework refers to the overarching structure of rules, systems, and institutions that facilitate payments within the United Kingdom. This framework includes traditional payment rails like Faster Payments and Bacs, alongside emerging digital payment infrastructures. Its purpose is to ensure efficient, secure, and accessible payment services. This system is vital for the nation’s economic activity.
Context ∞ The UK Payments Framework is currently undergoing significant modernization, with a particular focus on integrating new financial technologies, including stablecoins and potentially a digital pound. News reports often detail proposed changes and their implications for both traditional finance and the digital asset sector. These reforms aim to enhance payment system resilience.

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Bank of England Consults on Systemic Sterling Stablecoin Reserve and Holding Limits

The BoE's prudential framework mandates a 40% central bank reserve requirement and temporary holding caps to mitigate systemic deposit flight risk.