The Bank of England (BoE) has reportedly been told by the UK government that it must do more to support the development and adoption of digital assets.

According to a report from the Financial Times, UK government ministers have issued the central bank with a “secondary objective” to support innovation in digital currencies and payments.

The move is part of a bid by the UK government to position the UK as a forerunner for digital assets at a time when the market for tokenised funds and stablecoins us growing rapidly.

The BoE has also faced criticisms for fintech startups and digitally native financial services participants for moving too slowly in its supervision of digital assets service providers.

While stablecoins are set to play a greater role in the payments market, the BoE will also be responsible for overseeing the use of digital assets in capital markets and ensuring that innovation can be encouraged without risking the integrity of the financial system.

The new mandate is set to be enacted via an amendment to the Financial Services and Markets Bill which is set to be debated in September.

The BoE would then be required to provide an annual report on the progress of its newest requirement.

According to Sarah Breeden, deputy governor for financial stability at the BoE, said that the move would help to further enhance its work to enhance innovation in financial services.

“The bank is doing a huge amount, together with government and other authorities, to maintain trust and drive innovation in UK payments. This new secondary objective will further support that,” she said.