Regulating stablecoins is a single part of a wider government plan to become the cryptoasset hub of the world The government plans to recognise stabl
Regulating stablecoins is a single part of a wider government plan to become the cryptoasset hub of the world
The government plans to recognise stablecoins as legal tender as part of its plan to make the UK a ‘global cryptoasset hub’.
According to a statement, the government wants to pass legislation to create “conditions for stablecoin issuers and service providers to operate and invest in the UK.”
Regulating stablecoins, which are pegged to a domestic currency, is part of a wider plan to become the global cryptoasset hub.
Another proposal put forward is the formation of a financial market infrastructure to allow firms to experiment and innovate to provide key infrastructure services, with a focus on distributed ledger technology (DLT).
According to the statement, DLT “enables data to be synchronised and shared in a decentralised way” across multiple networks to achieve greater efficiency and transparency.
The government said it will begin a research programme to explore the feasability and potential benefits of DLT.
Other measures include exploring how to improve the competitiveness of the UK tax system, a cryptoasset engagement group to advise the government and a two-day ‘CryptoSprint’ to get the views of industry leaders.
Chancellor of the Exchequer Rishi Sunak also commissioned the Royal Mint to create a non-fungible token (NFT) this summer.
“It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country,” Sunak added.
The vision was set out in a speech by the Economic Secretary to the Treasury, John Glen, at the Innovate Finance Global Summit yesterday.
Glen said that further consultations on wider regulation will take place later this year.
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