Updated · May 20, 2022
UK Government Moves to Regulate Stablecoins for Payments
Updated · Apr 05, 2022
Chancellor of the Exchequer Rishi Sunak has also tasked the Royal Mint to create NFTs, among other widespread measures.
The UK Government is moving to adopt cryptocurrency as a means of facilitating payments. It will also introduce measures to regulate the notoriously volatile sector as part of plans to make the UK a “global cryptocurrency hub.”
In a statement on Monday, HM Treasury revealed that, following widespread consultation, some stablecoins could become a “widespread means of payment.”
Those are digital tokens with value backed by other assets such as fiat currency, gold, or other cryptos. They are significantly less volatile than the likes of Bitcoin.
“We want to see the businesses of tomorrow – and the jobs they create - here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term,” said Chancellor Rishi Sunak.
Sunak also has directed The Royal Mint to create non-fungible tokens to be issued by the summer.
Also called NFTs, those are non-interchangeable digital tokens that represent real-world objects like art, music, photos, or even tweets.
Last month, Ukraine became one of the first countries to introduce NFTs. Sales from the tokens have helped to fund its war effort following an invasion from Russia.
The UK’s NFTs will follow a different direction, although there are still no details.
As part of its “global cryptocurrency hub” objectives for the UK, the government will set out other measures, including:
- A “financial market infrastructure sandbox” to boost innovation for firms.
- Cryptoasset Engagement Group, consisting of ministers and host members from U.K. regulators and cryptocurrency businesses.
- Exploring ways of enhancing the competitiveness of the UK tax system to encourage further development of the crypto-asset market.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
Latest from Author
Your email address will not be published.