UK Drafting Proposal to Regulate Stablecoins and Private Cryptocurrency
The United Kingdom has announced plans to research stablecoins and a central bank digital currency (CBDC). The Treasury Department of the United Kingdom is drafting proposals to regulate private stablecoins and investigate digital currencies as an alternative to cash.
This news is coming off the back of the UK’s recent departure from the European Union (EU). The government is now looking for productive and innovative ways to improve its financial sector.
In an official announcement, the UK Treasury Chancellor Rishi Sunak stated that the new plans would strengthen its financial sector. The United Kingdom issued the first-ever Sovereign Green Bond, becoming the first country to make TCFD-aligned disclosures mandatory.
Rishi added that new technologies such as stablecoins and digital currencies could transform the way people make transactions. According to him, the United Kingdom is starting a new chapter in the history of financial services and set the country as the leading force of the world’s financial sector.
Stablecoins and its implications have been an issue since Facebook announced its plan to launch its digital currency, Libra. Lawmakers in Europe have since then been strict on guidelines that allow stablecoins in their jurisdiction.
The UK’s Approach to Regulation Outside the EU
The UK government has been keen to ensure its regulatory approach to financial services is tailored to the UK market. The United Kingdom is currently debating the Financial Services Bill. The bill is expected to lead to boost the economy and position the economy at the forefront.
The UK government is set to launch a Call for Evidence on the UK’s overseas regime to ensure it supports the UK’s position as an open global financial center. Also, the government will boost the number of new companies that want to list in the UK.
The UK government’s latest steps show the potentials of the blockchain industry in the mainstream finance sector. Other nations have also been quick to jump on the train with digital currencies high on the list.